Saturday, February 4, 2023

Japan Police Arrests Four Men For Operating Fraud AI-Based Crypto Scam

Four men have been taken into custody by Japanese Police for allegedly operating a fraud AI-driven crypto investment scheme. 

The Japanese publication Asahi Shimbun, recently, published a report, stating that the group used the fraud AI-powered crypto trading scheme to raise funds in the Aichi region of the country.

According to the report, the fake crypto scheme introduced by the group was popular as Oz Project and its aim was to offer high returns to the customers, while they facilitate crypto trading using artificial intelligence. However, all the promises made by the groups were false.

It has been alleged that the accused organized seminars and created social media groups on LINE messaging to seek investments from the users. They lured the investors by promising them a monthly return of 60 percent on the principal amount, within four months.

However, this fraud scheme generated 6 billion yen ($54.3 million) from 20,000 investors in Japan.

The scheme appears to be operating for a few years, now. The first complaint registered against this scheme was in September 2019, since then the police has been investigating the matter.

Cryptocurrencies have an unregulated nature, which makes it easy for scammers to fraud or misleads people. 

It has been reported that since October 2020, the frau cases related to crypto have risen by more than 1000 percent.

The recent case of crypto fraud is very different from others, as it used AI for the scheme. There are many firms which uses AI engines to make trading decisions, a very few are there which offer the same return as the Oz Project promised. 

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