Another message about the detention of fraudsters came from the law enforcement agencies of Japan. For organizing a scam, 4 suspects were arrested. They organized a fraudulent program, attracting funds from crypto investors without the intention of implementing the project.
Those arrested were Shoji Ishida, Yukihiro Yamashita, Takuya Hashiyada and Masamichi Toshima. They are directors of The Oz Project.
The Oz Project promised investors that they would double their money in four months and earn 60% or more per month thanks to artificial intelligence that automatically trades on their behalf. However, it is clear that this did not happen. Moreover, an automated trading system with AI did not actually exist at all.
The exact number of victims of the Oz Project is unknown. According to local media reports, from 10 thousand to 20 thousand Japanese people suffered from the actions of the scammers.
Attackers fraudulently obtained assets worth $ 55 million.
Investigators had suspicions that this group began to deceive people 4 years ago during their seminars throughout Japan. For example, one of the criminals held seminars and briefings for project participants and called for the creation and participation in a special group of investors in the popular Japanese messaging application LINE.
Thus, the scammers gathered investors who believed in the project, invited their families and friends, and thus the project grew.
The defrauded investors have filed civil suits in Nagoya and Tokyo for damages.
Will regulators be able to prove the suspects are guilty of scam?
This operation is close to fraud, but it is far from the fact that it will be possible to prove the untidiness of the plans. This is due to the fact that until recently, Bitcoin did grow by about the indicated percentage. True, now the exchange rate of this currency has stopped growing strongly (due to the struggle of China both with firms engaged in the calculation of transactions with crypto-money, and with all actions with digital currency). But businessmen may well say that this decline, in the opinion of “artificial intelligence”, is a temporary phenomenon. And, quite possibly, they will be right – a noticeable drop in the price of Bitcoin observed many times.
The term “artificial intelligence” now applied to almost any program, even not based on neural networks. If the application can somehow predict some parameter based on previous data, this is already enough for such statements. Even if it is a primitive take of profitability for a certain period. Businessmen will certainly be able to provide such a program, since it is written by any programmer in ten minutes (if the task is only to write the line “invest in Bitcoin, it has grown by so many percent over the past year”).
The proliferation of fraudulent schemes involving cryptocurrencies is one of Japan’s acute problems. Last year, information appeared on the network that the country had updated its record for the number of complaints about digital asset fraud.
Thus, there are still a lot of scams and scams associated with cryptocurrencies. However, recently, due to the tightening of regulation of cryptocurrencies and the closer attention of the authorities to them, reports have begun to appear that the authorities are finding criminals and arresting them.
Cryptocurrency crimes no longer go unpunished. The magnitude of the problem indicated by the amount of appropriated and stolen digital assets.