The Tainan City Police and Prosecutors successfully uncovered a fraud case in November last year, which used the virtual currency “USDT” as a lure for investment. This case involved 11 co-defendants who were re-arrested by the Tainan District Court on suspicion of providing money laundering services to the fraud group.
The co-defendants were mostly in their 20s, and one of them even attended anti-money laundering courses. It is worth noting that a 28-year-old man who attended the Financial Training Institute’s anti-money laundering prevention course became an expert in anti-money laundering prevention. However, he chose to go against the law and used his knowledge to create a false image for the fraud group in an attempt to evade legal sanctions.
During the investigation process, only one man surnamed Dai admitted to the crime, while the others strongly denied it. Faced with this situation, the prosecution urged the judge to give an appropriate judgment to ensure justice. It is reported that this fraud case has caused at least 20 victims, with losses ranging from tens of thousands to millions of dollars.
The fraud team, starting from March 2022, promoted USDT on social media platforms such as LINE, Instagram, and Facebook under the name “Youqiu Biying Shopping Society” and registered with the Ministry of Economic Affairs as a fake legitimate business to attract investors.
They deceived victims into investing through fake friendships and investment invitations, and relied on the accused currency traders to provide the buying and selling of USDT to establish trust. When victims bought USDT from the currency traders and deposited it into the wallet address instructed by the fraud group, the funds would be transferred to the wallet of the fake investment platform, ultimately resulting in the loss of the victims’ funds.
With the active prosecution by the authorities, society expects a greater deterrent effect on fraudulent activities and the protection of investors’ legitimate rights and interests.
Tainan
Currency Traders
Anti-Money Laundering Prevention
Fraud