Scam news

Crypto scammers use an ERC20 token to obtain $8M from investors

Crypto scammers in Taiwan devised a means to seek investments from unsuspecting investors. Instead of just word of mouth, the crypto scammers used an ERC20 token named IBCoin which they sold to investors and in the process made away with more than 8 million U.S dollars.

However, their tracks were uncovered by the local police where fifteen of the crypto scammers were arrested.

According to the Criminal Investigation Bureau (CIB), the fifteen individuals were arrested on different dates this month. As noted by Focus Taiwan, the crypto scammers were able to net over 30 unsuspecting investors who collectively parted with 8.13 million U.S dollars.

The activities of the crypto scammers were first reported in September last year by one of the investors after they never received any dividends from their investment.

Among things found in possession of the crypto scammers were “automobiles and written guidelines on fraud procedures.”

The CIB unearthed that Lin, the group’s purported leader:    

“Purchased IBCoins through his connections in China at a rate of NT$ 1.5 (roughly $0.05) per unit in 2017. He would then ask the people working for him to sell them at NT$50- NT$100 (roughly $1.6 – $3.3) per unit to victims while promising customers that they would earn big returns.”

To physically prove that the “big returns” were real, the group would flaunt fake lavish lifestyles on social media which included high-end cars and houses.

Investigators said that IBCoin has no known firms that are either accepting or trading it making it “a dud”.

Recently, another group of crypto scammers was charged in Taiwan for fraudulently carrying out a crypto investment scheme.

As the crypto topic gets hotter each passing day, investors are regularly finding themselves in the hands of crypto scammers who are taking advantage of their lack of knowledge.

Do you think crypto scammers around the world will continue to devise new means to net investors as the crypto topic gets hotter?

Let us know your thoughts in the comments section below.

coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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