Recently, the police in New Taipei City, Taiwan knocked down a criminal gang that carried out investment fraud in the name of virtual currency investment, successfully arrested 11 criminal suspects, and seized a number of mobile phones, computers, money counters, teaching war manuals and about NT $80,000 and other evidence. Among them, the police also found that the gangster lured the victim with the well-known investment APP "fox Wallet", so that it could easily earn a large amount of cryptocurrency, and become rich in just a few seconds.

It is understood that the group rented the high-level commercial office building as the computer room, engaged in fake game, investment fraud, in the way of fake friend investment, with the "raise, set, kill" mode of scamming victims to invest or into the gold game, defrauding not specific people, to invest in the APP to create a false impression of making money, until the victims want to make money that is deferred or lost contact. Police preliminary investigation of the number of victims as many as hundreds, and even many victims are not aware of.

Be aware of the risks of virtual assets

The FSC also once again reminded the public of the risks of virtual assets, and made a call that due to the high speculative nature of virtual currencies such as bitcoin and rarely used for payment purposes, the international community (such as the Group of 20 (G20) and the Financial Action Task Force (FATF)) has been referred to as "crypto assets" or "virtual assets". Governments have also repeatedly warned people about the risks associated with virtual assets.

The FSC stated that except for "virtual currency with security nature" (STO), which is a marketable security under the Securities Exchange Law and shall comply with the relevant provisions of the Securities Exchange Law, other types of virtual currency or related commodities derived from it (call rights, margin trading, etc.) are not approved financial commodities, and the virtual currency trading platform is not an institution approved by the FSC. It does not apply to the processing mechanism of the existing securities Investors and futures Traders Protection Center or financial consumption evaluation center.

Finally, in view of the fact that the virtual asset market is vulnerable to artificial operation or speculation, trading information is opaque and price fluctuations are large, and investment risks are high, the public, whether trading through virtual currency trading platforms at home and abroad or privately, must be vigilant, carefully judge the authenticity of relevant information, and prudently assess investment risks, to avoid fraud or loss of capital resulting in loss of equity.