Eight people have reportedly been arrested in Tokyo for running a cryptocurrency pyramid scheme that collected 7.8 billion yen ($68.42 million) from thousands of investors in Japan.
They are suspected to have violated Japan's Financial Instruments and Exchange Law by not registering their business operations with the authorities, the Asahi Shimbun quoted Tokyo's Metropolitan Police Department as saying.
The suspects touted a bogus investment firm called "Sener," which they claimed to be based in the U.S.
About 500 million yen ($4.41 million) were collected in cash, and the rest in Bitcoin, from about 6,000 people in 44 prefectures.
Police believe that the suspects tried to avoid prosecution by making transactions in cryptocurrencies, which does not fall under the country's financial exchange law.
Six of the suspects admitted to the allegations.
The investors were promised monthly returns of up to 20 percent, and additional returns and payments if they added new customers.
The scheme operated between February and May 2017.
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