Taiwan Police Arrest Man Behind Alleged Bitcoin Trading Scam

NEWS
Stan Higgins
May 13, 2016 at 22:53 UTC  |  Updated  May 14, 2016 at 11:41 UTC

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

Central News Agency 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

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