Taiwan Police Arrest Man Behind Alleged Bitcoin Trading Scam

Local authorities in Taiwan are said to have arrested a man believed to have orchestrated a bitcoin trading platform scam.

AccessTimeIconMay 13, 2016 at 9:53 p.m. UTC
Updated Sep 11, 2021 at 12:16 p.m. UTC

Local authorities in Taiwan are said to have arrested a man believed to have orchestrated a bitcoin trading platform scam.

reports that a man identified only as Ho defrauded as many as 49 customers out of roughly $300,000 after promising outsized returns on a bitcoin margin trading platform. Reports indicate that Ho told investors in January 2015 that they would receive a windfall after "major market players" bought their bitcoins at a higher price.

Yet, Ho appears to have done the opposite, according to the report, which stated:

"Ho simply changed the company's server settings and turned his customers' bitcoins into his own. He then publicly claimed that his company was being hacked online and shut down his operation, the police said."

The report further indicates that Ho may have faced debt problems, as police reportedly told CNA that he "owed money to loan sharks".

The arrest highlights the prevalence of digital currency scams in Asia that have targeted unsophisticated investors with promises of big returns. Last August, local authorities arrested two individuals tied to the MyCoin scam, which resulted in millions in losses for those targeted.

Image via Shutterstock


Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC