Twelve under investigation in connection with NT$100 million crypto fraud

Taipei, Feb. 7 (CNA) Prosecutors are investigating 12 suspects for allegedly swindling around 100 investors in a fraudulent cryptocurrency mining scheme out of almost NT$100 million (US$3.2 million), police said Wednesday.

In a statement, the Taipei City Police Department said the scheme's alleged mastermind -- a member of the Bamboo Union organized crime group surnamed Chang (張) -- convinced the owner of a crypto mining operation that he could help him find investors for a second crypto mine.

Chang asked the owner to pay him an upfront and later used the existing operation and a new company registered in the mine owner's name to solicit funds from nearly 100 investors, police said.

However, instead of setting up the promised second crypto-mining operation, Chang and his accomplices pocketed both the money paid by the mine owner as well as millions of dollars from other investors, police added.

Chang and his accomplices later told investors the cryptocurrency investments had gone bad and that all the money was lost, police said.

According to police, Chang and his fellow gang members used blackmail and other threats to intimidate investors if they wanted to get their money back.

Chang and 11 others were arrested late last year following a series of raids across Taiwan, during which police seized evidence such as cash, luxury cars and banknotes.

The 12 suspects have been handed over to prosecutors for further investigation on suspicion of fraud and violating the Organized Crime Prevention Act, police said.