Kaohsiung Qiaotou District Prosecutor’s Office Uncovers Fraud Case Involving “Eden Platform”
On May 1, the Kaohsiung Qiaotou District Prosecutor’s Office uncovered a fraud case under the name “Eden Platform,” which solicited investment in virtual currency Yuzu Coin (EOS) and claimed an annual profit of 144%. The number of victims reached 2,100, with the amount involved soaring to NT$40 million. The main suspect, a man surnamed Tsai, is a former Rotary Club president and is currently under detention with restricted contact.
“Eden Platform” Claims to Offer Fake Investments While Attracting Funds
The Qiaotou District Prosecutor’s Office indicated that they recently received reports from the public stating that a fraud group, using the name “Eden Platform,” was promoting investments in virtual currency Yuzu Coin (EOS), targeting adherents of certain temples in Kaohsiung’s Nanzih District and residents in Tainan and Kaohsiung to attract funds.
The group employed tactics such as:
- Guaranteed profits
- High returns
- Funds can be withdrawn at any time
Additionally, they used a referral system to attract numerous participants. The mastermind also exploited his former positions as a Rotary Club president, corporate chairman, and community organization leader to present himself as a “trustworthy professional” and held multiple investment briefings.
Fraudulent Investment App Claims Annual Profit of 144% and Offers Referral Bonuses
Investigations revealed that the group began its fraudulent activities in 2021, collaborating with a Chinese fraud group to create the “Eden Platform” app. They used presentations and verbal promises to claim to the public:
- An annual profit rate of up to 144%
- Principal can be withdrawn at any time
- Referring others to invest earns “bonuses”
In reality, these investments were entirely fictitious, and the group did not purchase any EOS for the investors. The platform could not be terminated, nor could the principal be withdrawn, making it all a scheme to attract funds.
Search Action on April 29: Main Suspect Detained, Eight Others Brought In
On the morning of April 29, the Qiaotou District Prosecutor’s Office launched a search operation at the residences and offices of the main suspects surnamed Tsai and Yang, seizing:
- A sum of cash
- One Mercedes-Benz sedan
- Various virtual currencies (estimated value exceeding NT$4 million)
- A list of victim investors (exceeding 2,100 people)
At the same time, they urgently notified financial regulatory authorities to freeze the fraud group’s members’ financial accounts to prevent fund transfers.
Prosecutor’s Detention of Main Suspects Approved, Others Released on Bail
After overnight interrogation, the prosecution determined that the main suspects, Tsai and Yang, were suspected of violating banking laws and committing fraud, with serious charges and potential flight risk or collusion. They requested the court to approve their detention with restricted contact.
As for the other executives, including a man surnamed Lin, five individuals were released on bail ranging from NT$100,000 to NT$200,000.
Image of the official press release from the Qiaotou District Prosecutor’s Office regarding the Yuzu Coin fraud case.
Abuse of Social Status and Religious Affiliation: Public Must Invest with Caution
This case once again highlights how some fraud groups “disguise themselves in religious, community, or personal networking cloaks” while secretly attracting funds, exploiting the public’s trust in acquaintances or faith to set up fake investment platforms for profit. The Qiaotou District Prosecutor’s Office also urges the public:
High returns and guarantees are warning signs of fraud; any investment must be verified for legality and risk.
Risk Warning
Investing in cryptocurrency carries a high degree of risk, and prices may fluctuate dramatically, possibly resulting in the loss of the entire principal. Please evaluate risks carefully.