About eight men have been reportedly arrested in Japan for claims of pyramid schemes and fraud which is up to the amount of $60 million. This money is alleged to be in both cryptocurrency and fiat currency and is believed to have been taken through the use of their pyramid scheme.
The eight men who were arrested were said to be in charge of an investment corporation which is based in the US. This investment corporation which is also called “sener” was said to be conducting seminars with different foreign speakers. Most of these seminars are expected to have been recorded with at least one of them being uploaded right up to YouTube. In these videos, it was proven that the eight men promise all the investors and foreign speakers who were present up to 20% returns on all their investments. They also asserted that the investors were bound to get even more returns should they make more people join the scheme or investment company.
In Tokyo, Over 70 People Have Filed A Class Action, Seeking Compensation For Fraud
This seminars eventually led to the investors giving them a lot of money in bitcoin and fiat currency it is expected that 6000 people made several investments to these men which numbered into millions. It is believed that these transactions took place across 40 locations. For example, in Tokyo over 70 people filed a class action lawsuit of about $3.2 million for fraud seeking damages. The evidence which has been presented his a lot and it is believed that six of the suspects which this allegation has been made has accepted the allegation and admitted to the claims while the other two have continued to vehemently deny the claims.
It is believed that the suspects initiated the use of the digital currencies in a bid to avoid litigation. This is due to the fact there is no direct law against cryptocurrencies in Japan at the moment. At the moment, the various cryptocurrencies are not seen as securities in the country. Despite all the problems and issues which are associated with cryptocurrencies, Japan has continued to embrace the world of digital currencies with open arms. This is so even after the huge hacks which have taken place in recent times to Zaif which is a local cryptocurrency in Japan.
It remains to be said what the fate of eight men would be and if Japan would reconsider their stance on cryptocurrencies
