Scams are not new in the world of decentralized finance and cryptocurrencies. In a recent episode of a cryptocurrency scam, as many as 20,000 Japanese cryptocurrency investors have been fraudulently duped for over $54 million.
Japan’s law enforcement agency has arrested four men in connection with the scam and investigations are underway. Those arrested were allegedly operating an AI-based cryptocurrency Ponzi scheme. Japan’s top media outlet, Asahi Shimbun reports, the suspects grossed about 6 billion yen ($54.3 million) from investors. The suspects were running a project called the “Oz project.”
The project was offering an incredible 60% monthly return on crypto investments. Lured by the return potential, about 20,000 people in the country invested in the project. The team operating behind the project had also created community groups and the members invited other members to become a part of the project.
The first complaints had been filed back in 2019 and since then the police had been investigating the matter. As cryptocurrencies are gaining popularity, there have been several scams meticulously designed to scam investors. Also, with the advent of Defi the number of cryptocurrencies has risen.
At Cryptoupdate we recommend not to be a part of any project that promises too good to be true returns. It is crucial to do your due diligence before investing in any project related to cryptocurrencies, blockchain, or Defi.