Last Friday, the suspected mastermind behind the Digital Bitcoin Company scam was handed over to the Taichung District Prosecutors Office, in Taiwan.
The investigation, carried out by the Taipei Criminal Investigation Bureau, revealed that Mr. Ho – the accused head of Digital Bitcoin Company – defrauded 49 clients out of approximately $306,523.
According to a Focus Taiwan report, Ho incorporated Digital Bitcoin Company in 2014. However, in 2015, Ho used his company to trick victims by promising them substantial returns via speculative bitcoin margin trading.
According to the Telecommunications Investigation Corps – a subdividing on the Taipei Criminal Investigation Bureau – Ho claimed the venture would be profitable due to the rising popularity of the digital currency across the globe. Ho told his victims that the price of bitcoin would rise due to big investor money flooding into the market.
Instead of using customer bitcoin deposits to trade, Ho misappropriated all digital currency deposits and then falsely claimed that his company had been victim of hackers. Investigators also said Ho used document forgery to perpetrate his scam.
The investigation also revealed that Ho was indebted to loan sharks in the country, which may have been the primary motive for the fraud.
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