Japan: Tokyo Police Arrest 8 Men Allegedly Involved in $68 Million Crypto Pyramid Scheme
Newsflash: Crypto Market Cap Drops Below $200 Billion for First Time in November
This week’s crypto downturn forced the cryptocurrency market cap past an uncomfortable milestone on Wednesday, with the cryptocurrency market cap dropping below the $200 billion mark a day ahead of the contentious Bitcoin Cash hard fork.
The crypto market had traded as high as $220 billion on Nov. 7, about the time many bulls were anticipating that the bitcoin price could break above its 200-day moving average (DMA) and begin the long grind back to the all-time high it set last December.
That breakout failed to materialize, and the crypto market began a gradual decline that steepened on Wednesday morning as the bitcoin cash price erased the gains it had made in advance of tomorrow’s hard fork.
Tokyo police have arrested eight men that are suspected of collecting a total amount of $68.4 million in cash and cryptocurrency using a pyramid scheme, Japanese daily newspaper Asahi Shimbun reports Wednesday, Nov. 14.
The suspects claimed to run a U.S. investment company dubbed “Sener,” conducting seminars with foreign speakers. The police report that at least one of the meetings has been recorded, with video uploaded on YouTube. During the seminars, the group of suspects promised monthly returns from 3 to 20 percent for the investments. The suspects also asked the participants to pledge to invite other investors in order to get additional returns.
The investigators believe the suspects received cash and Bitcoin (BTC) from about 6,000 people in 44 prefectures, including Tokyo. A group lawsuit was filed at the Tokyo District Court by 73 victims of the fraud, seeking approximately $3.2 million in damages. According to Asahi Shimbun, six men have already admitted to the allegations, while two others deny them.
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