Police Reveal More Details About ‘USD 60M’ Crypto ‘Scam’

Altcoins Crime Japan Scam
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Tim Alper
Author Categories
About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more

Further details are emerging about an alleged Japanese crypto scam that may have sucked in between 15,000 and 20,000 mainly middle-aged investors.

Source: AdobeStock / taka

As reported, police in Aichi Prefecture are continuing to investigate a company named OZ Project after officers arrested four men, believed to be the masterminds behind the alleged scam.

The ringleader is believed to be Shoji Ishida (59). And per Chunichi, police sources say they have information that Ishida first launched the initiative back in the spring of 2017, when he allegedly began enlisting “certified instructors” to hold “seminars” for would-be investors in various locations around Japan. A number of online promotional efforts also helped recruit investors, who were told to expect profits of x2.5 using the OZ Project’s AI-powered trading bots.

Media outlets have published varying accounts of the number of people who may have been duped into investing in the company, with Mainichi putting the figure at 15,000 and Asahi stating 20,000. But most agree that some USD 59m – USD 60m worth of investor funds appear to be at risk.

Police have told the Japanese media that the OZ Project appears to be entirely “fictitious” and centers around an OZ point token – which appears to have no monetary value. Officers claim that the project does not appear to have a blockchain network – a common feature among proven crypto-flavored scams such as the OneCoin project.

In September 2017, police say, Ishida ordered instructors to delete posts and blogs they had made about the project, clearly aware that trouble was on its way.

But the project appears to have rumbled on in the time since, although a number of civil lawsuits have been filed.

The suspected masterminds were all described as white-collar workers, and the oldest of the group, a 61-year-old, reportedly (per a separate Mainichi article) attempted to blackmail one victim who was on the verge of going public, sending the following warning through a third party:

“If you take this matter to the police […], you will not be able to reclaim your stake.”

Tokai TV reported that police claim that funds have been remitted to an overseas account, but are continuing to investigate, while most of the alleged victims are reportedly “men and women in their 50s.”

Tokyo Web quoted an anonymous “couple in their 50s” as stating that they had realized the project was “fraudulent” as early as October 2017, and had been involved in efforts to retrieve their funds ever since. Some of the alleged masterminds appeared to have attempted to throw investors off the scent by claiming they too had been the victim of “deceit.”

The OZ executives allegedly claimed their project was being backed and “supervised” by a major “Singapore-based cryptocurrency exchange,” and that their AI-powered transactions were “90%” profitable.

____

Learn more:
Japanese Regulator Report Suggests DeFi Regulations Could Be Coming
Bank Manager Gut Feeling Helps Her Thwart Crypto Scammers

UK Detectives Break Crypto Seizure Record, Brace For More
Despite the Crackdown, Crypto Fraudsters Still Run Amok in China

More Articles

Price Analysis
Will Trump’s Tariffs Boost Bitcoin: Down 5% Again
Arslan Butt
Arslan Butt
2025-02-08 14:39:24
Price Analysis
Solana Struggles: Price Down Almost 15% in a Week – Is It Time to Buy?
Arslan Butt
Arslan Butt
2025-02-08 13:22:54
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors