In Japan, four men have been arrested in connection with a cryptocurrency scam based on artificial intelligence.
Approximately 20,000 investors lost up to $54.3 million to con artists who promised them big profits.
Four men have been arrested in Japan in connection with a phony cryptocurrency trading fund. The men were detained on accusations of conducting a deceptive AI-based cryptocurrency investment scheme. According to a report by Japan’s Asahi Shimbun, the suspects raised roughly 6 billion yen ($54.3 million) from investors.
In Japan, four individuals have been detained for attempting to defraud others using cryptocurrency.
The Oz Project is the name of the group. It was based in China’s Aichi region until they were captured by the Aichi Prefectural Police. Shoji Ishida, a 59-year-old corporate officer, Yukihiro Yamashita (61), Takuya Hashiyada (46), and Masamichi Toshima are among the suspects (52).
The bogus group promised investors extraordinarily high returns by employing artificial intelligence to trade cryptocurrency. Within four months, the Oz Project promised investors a 60% monthly return on their investment, or 2.5 times the principle amount. About 20,000 people put their money into the fake crypto investment plan because of the promised big returns.
Furthermore, the fake organisation hosted seminars and briefings, as well as forming a group on the LINE messaging service to solicit investors. The original investors in the group appear to have begun to ask others to join and participate in the project, resulting in an increase in the number of Oz Project investors.
Previously, in 2019, several Nagoya City investors filed criminal accusations against the Oz Project. The matter has being investigated by the prefectural police since then.
Scams involving cryptocurrency are on the rise.
The rise in crypto frauds over the last year has been frightening, with some experts blaming it on the asset class’s lack of regulation. Since last October, Americans have lost over $80 million in bitcoin owing to investment frauds, according to data from the Federal Trade Commission (FTA). The amount lost has increased tenfold in the last year. According to the FTC, over 44% of the victims are between the ages of 20 and 39.
The FTC stated in a news statement dated May 17th that nearly 7,000 people had reported losses due to cryptocurrency scams since October 2020. According to the commission, the average loss is $1,900.
Many people have been duped by websites that ask them to invest money in cryptocurrency, according to the FTC. These investment platforms frequently post phony testimonials and use crypto jargon to appear genuine. In most circumstances, investors can see how their money is anticipated to grow. When they try to withdraw the alleged gains, however, complications develop. The fraudsters then beg them to send in additional cryptocurrency, resulting in even more losses.
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