Fake exchange scam nets $2.6 million; 20 arrested in Taiwan

Taiwanese police have dismantled a sophisticated cryptocurrency investment scam, arresting 20 individuals allegedly involved in defrauding victims out of millions. The group, led by a man identified by the surname Li, operated by renting prime commercial office spaces to create the facade of legitimate virtual asset exchanges.

To gain trust, the scammers aggressively marketed on social media, promising guaranteed profits and "no-loss" investments. They then persuaded their targets to download fraudulent mobile applications, such as "YHHJC," "Century Coin Exchange," "C.W. Currency Exchange," "Success Coin Merchant," and "Mingyi Technology." Victims were led to believe they were investing in virtual currency indices, gold indices, and other commodities, watching fabricated profits soar on the fake platforms.

In total, 20 individuals fell victim to the elaborate scheme, with some losing millions of New Taiwan Dollars. The total financial damage is estimated at over 84.66 million yuan (approximately $2.6 million USD). The Criminal Investigation Bureau's Telecommunications Investigation Division, in collaboration with local law enforcement agencies, conducted a year-long investigation, utilizing technology to track the suspects' movements and communication networks.

Between April of last year and June of this year, authorities launched six major raids across major cities including New Taipei, Taichung, Tainan, and Kaohsiung. The operation resulted in the apprehension of the 23-year-old alleged mastermind, along with key figures responsible for managing funds, processing transactions, monitoring activities, and collecting money. Investigators also seized over 2.95 million yuan in illicit cash, operational manuals, and even counterfeit license plates used to evade detection. The suspects have been transferred to the Taichung District Prosecutors Office to face charges including aggravated fraud and money laundering.