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Taiwan Charges 7 Bitcoin Traders for Violating Multiple Banking Laws

According to a media outlet’s report, 7 people in Taiwan, a state in East Asia, were indicted on January 18 for allegedly violating banking and business laws. Before this time, they were arrested in June for operating a fraudulent Bitcoin scheme which led to the loss of funds of over a thousand Taiwanese people.

Bitcoin Investment Scheme Promises 355 Percent Return

As the report stated, 7 persons who were operating a Bitcoin investment program had promised their clients 355 percent profit after one year. However, most customers were not paid the expected returns in February and by April, the payment stopped entirely. It was also revealed that as at October 2016, the operators of this scheme had raised up to $51 million.
The Taichung District Prosecutors Office stated that one of the accused is a 47-year-old man, surnamed Lin. The latter is said to have set up an office in a region that attracted clients from Taiwan and China. Other cities where Lin garnered investors are Fuzhou, Shanghai, and Pingtan County.

Authorities Claim 1,000 People in Taiwan Have Been Defrauded

Shedding more light on the event, their prosecutor said that even if the business had been a success, the accused would’ve still violated the Banking laws. Moreover, the city’s Investigation Bureau under the Ministry of Justice (MJIB) pointed out that in Taiwan alone, 1,000 people were swindled by the group.
As a consequence, all 7 of them have been indicted for “violating Taiwan’s Banking and Multi-Level Marketing Supervision acts”.  This was after witness testimonies and other evidence were examined. On the other hand, it is still uncertain if the accused have made comments in order to plead their cause given that there have been no reports to cater to that aspect.

More Members of the Crypto Industry Face Charges

Taiwan’s case is not the first of its kind because several members of the crypto industry have faced the full force of the law. An instance was reported by BTCNN on January 7 that Nistor Vlad Călin, CEO of Coinflux has been extradited to the U.S. The founder of the cryptocurrency exchange was allegedly involved in a scam that led to a loss of funds by some U.S. citizens.
BTCNN on September 28 also informed of Wall Street Journal’s (WSJ) report which outlines that some cryptocurrency companies are using their platform to defraud customers. Based on their findings, about $88 million has been stolen from clients. WSJ also stated that these conclusions were arrived at after some companies in the industry were investigated.

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