According to a report by the Central News Agency, the Criminal Police Brigade of the Taichung City Police Department announced on Monday (8th) that they have uncovered a fraud group that uses virtual currency physical stores to gain the trust of victims and launder money through the “Alfred Wallet System”. The illegal money flow amounts to approximately 33 billion New Taiwan dollars, with a total of 162 victims. The amount of fraud or money laundering reaches over 340 million New Taiwan dollars, and the leading cryptocurrency exchange is also involved in this case.
The Taichung City Criminal Investigation Division held a press conference stating that there were fake investment fraud groups that introduced victims to virtual currency physical stores to make appointments to purchase virtual currency prepaid cards. After purchasing and depositing funds into the fake investment platform, the victims discovered that they were unable to withdraw, resulting in being defrauded. Police analysis found that the common factor in multiple cases was the use of the “Alfred Wallet System” and “A+CARD”.
The task force has been investigating for over a year, tracing the flow of currency, financial data, internet and telecommunications, and discovered that the Alfred Wallet and A+CARD have had a circulation of 1.1 billion Thai Tether (USDT) coins (approximately 33 billion New Taiwan dollars) since their launch two years ago.
Further investigation by the police found that the Alfred Wallet system was developed and maintained by the leading cryptocurrency exchange and its subsidiary group companies. The subsidiary company, Fu Hai Digital Innovation Co., Ltd., is responsible for recruiting franchise dealers. By utilizing the resources of the parent company’s legitimate exchange, they easily transfer a large amount of illicit proceeds through legal cover.
Since June 2013, the Taichung City Criminal Investigation Division has launched 7 waves of searches against multiple companies. They have arrested 26 suspects and detained 6 defendants. They have also seized virtual currencies worth over 7 million New Taiwan dollars and confiscated 2 properties under the names of the suspects.
Source: Central News Agency
