The Tokyo police department has arrested eight men who’ve allegedly been running a cryptocurrency pyramid scheme. In total this scheme collected 7.8 billion yen, or $68 million, from over 6000 victims from all over Japan. They got the money using a fake investment firm called ‘Sener’, according to the Japanese newspaper The Asahi Shimbun.
The police arrested the group under suspicion of breaking the country’s financial laws and not registering their business with financial regulators. On top of that they tried to mask their actions using cryptocurrencies. Six of the men admitted the allegations, while two didn’t.
Under the name of Sener, the group acted like their were investing in cryptocurrencies on behalf of their investors. In reality they were just getting money and stealing it. The group promised 3 to 20 percent returns per month, and people would get rewards for bringing in friends.