Japanese Police Arrest Suspected Masterminds Behind $ 55 Million AI-Led Crypto Scam

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Four men have reportedly been arrested in Aichi Prefecture in Japan for running an allegedly fraudulent crypto investment scheme that persuaded investors they could reap profits on the basis of an artificial intelligence-based trading system (IA).

It is believed that around 20,000 Japanese investors nationwide were involved in the program, which raised an estimated total of 6 billion yen ($ 55 million). The four suspects: Shoji Ishida, Yukihiro Yamashita, Takuya Hashiyada and Masamichi Toshima, were arrested on July 12, according to Japanese newspaper Asahi Shimbun.

The alleged scam, dubbed “Project Oz,” promised that the automated AI-based system would allow investors to recoup 100% of their initial investment, with guaranteed profits of two and a half times its original value at the time. four month course. Several of the program’s investors have filed civil suits in Nagoya and Tokyo for damages, Asahi reported.

To solicit investors, Project Oz had a dedicated team member who organized seminars and briefings for attendees and encouraged attendees to create and engage in a dedicated investor group on the popular app. Japanese LINE messenger. This strategy is believed to have prompted many participants to bring their friends and relatives into the program.

Prior to yesterday’s arrests, Nagoya-based investors had already filed criminal charges with prefectural police as early as September 2019. Asahi notes that police also searched suspects’ properties for additional evidence.

Related: Crypto Criminals Got Away With $ 5 Billion Less In 2020 As Fraudulent Revenue Diminishes

As artificial intelligence and other new technologies continue to be exploited by malicious actors to endow their schemes with alluring appeal, the technology has also been used to target these criminals. As early as 2018, Dubai police successfully used smart programs and AI technology to quickly track down a gang behind a $ 1.9 million Bitcoin (BTC) armed robbery.

In the UK, the country’s Advertising Standards Authority revealed this week that it is increasing its ability to track suspicious crypto ads online using technologies such as scratching and artificial intelligence.

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