A Taiwanese man invested in Bitcoin and defrauded 50 million

     According to a report by Taiwan media on March 23rd , a Taipei man surnamed Shi called on netizens to invest in the virtual currency Bitcoin with the slogan of offering an extra profit of 2.5 times. In just three weeks, he attracted 2,000 netizens to join. However, the man later said that there was a "calculation problem", causing the netizens to lose all their money, with the loss amount reaching NT$50 million ( New Taiwan dollars , the same below).

Bitcoin ad: "Use Bitcoin to transfer as much money as you want to anyone around the world."

The virtual currency Bitcoin has set off a craze in recent years. Shi used the slogan of short-term high profits on Facebook and posted several photos of seminars he hosted, calling on netizens to invest in Bitcoin. In just three weeks, he attracted more than 2,000 people to join.

He not only claimed that as long as you invest in 3 bitcoins with a total value of about 40,000, you can make an additional profit of 2.5 times, and you can double it 6 times, which is equal to 244 times. He also boasted that some netizens made more than 50 million with 1-2 million. Others believed him and invested in him, and thanked him for providing the platform. At the beginning, some netizens did receive profit dividends, but after March 11, there was no news. Some people became suspicious and wanted to get their investment back, but were rejected. It is estimated that the number of victims is nearly 1,000, and the loss amount is as high as 50 million. The victims reported the case to the police in various places. The man surnamed Shi finally changed his words and promised to compensate 16% of the investment principal.  

Financial experts warn: "Many people don't actually understand the situation of Bitcoin, but because they have such a big dream, 1 Bitcoin is equal to 13,000, and the price may continue to rise in the future, many people will probably be tempted by the benefits and be defrauded, so there will be continuous incidents of Bitcoin fraud."  

Because Bitcoin is a peer-to-peer virtual currency that does not need to go through a bank, it is difficult for the police to track its flow. In the kidnapping of Hong Kong tycoon Huang Yukun in 2015, the kidnappers specifically requested that the ransom be paid in Bitcoin. Apart from this, there are also reports of money-making cases from time to time, almost all of which are under the slogan of short-term high profits. However, there is no free lunch in the world, and the public should not be too blind and dream of getting rich overnight.

In mainland China, foreign exchange traders have found that criminals usually use virtual currencies to commit investment fraud, most of which are in the form of "Ponzi schemes."  

So, what are the characteristics of "MLM coins"? 1. Individuals or companies create coins by themselves, which have no value; 2. They are not traded on third-party platforms, but make money by recruiting people; 3. They rely on head fees to distribute dividends, and disappear due to the bankruptcy of the company; 4. They brainwash members through powerful propaganda.