Four people have been arrested in Japan on suspicion of running an AI-based cryptocurrency investment scheme. The group, which managed to reach close to 20,000 investors, managed to collect 6 billion yen in total. In collecting this amount, investors were promised a profit of 2.5 times. It also turned out that this operation has been going on since September 2019. However, the investigation could only be concluded at the moment, despite the complaints.
Cryptocurrency fraud, $54 million fundraised
In the previously undetected fraud case, Japanese police arrested four people for allegedly operating a fake crypto trading fund. According to a report by Japanese publication Asahi Shimbun, the group has reached out to investors in the country’s Aichi region for a fake AI-powered cryptocurrency trading fund.
The group, which calls themselves Project Oz, allegedly made false promises by promising very high returns on leveraging artificial intelligence to trade cryptocurrencies. The group is also accused of creating a group on the LINE messaging app to hold seminars and solicit investments. They allegedly offered investors a monthly profit of 60%, or 2.5 times the principal amount, within four months. The group allegedly raised 6 billion yen (US$54.3 million) for the scheme from approximately 20,000 investors across Japan, due to a series of false promises.
The investment plan says it has been going on for years
In addition, it turned out that the investment plan has been going on for several years. According to the report, police have been investigating the case since September 2019, when investors first filed a complaint in Nagoya. The inclusion of cryptocurrencies in a partially unregulated asset class also gives rise to flexibility in research. Therefore, since October 2020, cases of crypto fraud are 1%. increased by more than 000.
As a result, the group Cryptocoin. com
As we noted , it is accused of using artificial intelligence, which is less common in other crypto scams. While firms use AI engines to make trading decisions, they rarely deliver the same returns promised by Project Oz. In reality, most AI-based funds can deliver annual returns of 20% to 30%, despite the potential risk of losses from adverse market conditions. However, by reaching people through social media and communication channels, aggressive groups are able to create a fund with a series of higher profit returns.