The Fraudulent Scheme

45-year-old Mr. Hsu led a fraudulent pyramid scheme exploiting the elderly, establishing a fake investment platform and app named "DuoDuo Blind Boxes." They conducted investment seminars across Taiwan, enticing people to join by promising a 3% profit on reselling these blind boxes, pressuring them to become members and purchase USDT for deposit.

Exploiting the Elderly

From 2021 onwards, this fraudulent group targeted senior citizens, luring them with seemingly "free meal seminars." These events featured accomplices posing as lecturers, exploiting the elders' lack of knowledge about virtual currency transactions, and pitching the investment opportunity in the "blind box platform."

The Deceptive Process

Hsu and another individual, Mr. Guo, acted as hosts for these investment seminars. They amped up the atmosphere, bringing in guest lecturers halfway through the meal to explain how to make short-term investments for high profits. These lecturers recommended joining the "DuoDuo Blind Boxes" membership, purchasing USDT, and depositing it into the website or e-wallet to earn points.

The Illusion of Profit

The platform allocated specific time slots daily for members to purchase these "blind boxes." Prices ranged from 300 to 2000 USDT. Members who bought and resold these blind boxes on the platform earned 3% in points. This cycle encouraged continuous deposits, but in reality, these blind boxes held no physical products.

The Escalating Fraud

Initially, the platform processed withdrawals, but in March of this year, Hsu claimed a system upgrade and stopped the payouts. Many members realized they had been scammed only after a considerable delay, leading to over 40 individuals reporting their losses, totaling over 10 million NTD.

Legal Actions Taken

After a six-month investigation, authorities conducted raids in September, apprehending one suspect named Mr. Chuang. In mid-December, they arrested Hsu and seven others in Taipei, New Taipei, and Miaoli, seizing cash, phones, bankbooks, and promotional materials.

The police confiscated a total of NT$850,000 in cash, 11 mobile phones, one passbook, and several investment pamphlets during their investigation. (Image Source: udn.com)

Hsu acknowledged the illegitimacy of the scheme upon arrest, expressing resignation about the inevitable consequences. Despite his foresight, the authorities charged him and all accomplices with fraud.

Deceptive Schemes Preying on Trust

The 'Duo Duo Blind Box' scheme stands as a stark reminder of the vulnerability individuals face, especially when lured by promises of quick and substantial returns. This incident highlights the imperative need for stringent regulation and public awareness campaigns against such financial scams. The perpetrators' disregard for the financial well-being of others, particularly the elderly, underscores the importance of stringent legal consequences to deter similar fraudulent activities in the future.

Protecting Vulnerable Populations from Financial Exploitation

This appalling exploitation of elderly individuals highlights the urgency of safeguarding vulnerable populations against financial scams. The calculated manipulation of trust and lack of awareness regarding emerging investment schemes underline the need for increased public education and stringent measures to combat such deceitful practices. It's essential for authorities to not only prosecute perpetrators but also proactively educate the public to prevent future instances of financial exploitation.