In a report coming out of Taiwan, an individual who founded and ran a bitcoin company has been arrested on charges of fraud, breach of trust and document forgery after allegedly causing losses to 49 customers in a month.
The chairman of Taipei-based Digital Bitcoin Company, a man identified by his surname Ho has been arrested and handed over to the Prosecutor’s Office in Taiwan, according to a report by local publication Focus Taiwan.
Criminal Investigation Bureau (CIB) officials revealed that Ho had swindled NT$10 million (approx. USD $306,500) and caused losses to 49 customers in a month.
Ho originally set up Digital Bitcoin Company in June 2014. In January 2015, he purported that significant market players were interested in buying bitcoins at a high price. His customers bought into the story to buy bitcoins as an investment opportunity.
Although details remain scarce, Ho is alleged to have simply changed the company’s server settings to take control of his customers’ bitcoins, as his own. To complete his scam, he then publicly claimed