Exposing cryptocurrency scams, analyzing tactics! A glimpse into the future expectations of technology lawmaker Kao Hung-an on blockchain

Legislator Kao Hung-an held a press conference yesterday with two victims of the transnational Ponzi scheme "CloudToken," in addition to the victims exposing the fraudulent tactics and methods used. Kao Hung-an also emphasized that the current regulatory boundaries regarding virtual currencies are ambiguous, leaving victims in a constant state of helplessness. He urged relevant authorities to revise the relevant regulations as soon as possible.

How does CloudToken lure investors?

Legislator Kao Hung-an pointed out that this case involved over a thousand victims and attracted funds totaling nine billion. Using technology terms such as "blockchain" and "cryptocurrency," along with the promise of high returns of 6%-12%, the scheme lured investors. However, in reality, there were no quantified robots, AI, or other technologies claimed to manage and operate users' funds. After the event, a systematic approach to lure investors into "CloudToken" was compiled on Facebook:

• Guiding victims to purchase common cryptocurrencies on legitimate exchanges
• Joining the CloudToken wallet
• Claiming to use the JARVIS robot for quantified trading
• Initially using the platform coin CTO
• Multi-level referral bonuses

Initially, CloudToken created the illusion that its platform coin CTO had practical application scenarios such as exchanging for airplane tickets, internationally renowned hotels, and product vouchers. However, earlier this year, the operator abruptly halted redemptions citing "platform updates," "anti-extradition bill protests," and the "COVID-19 pandemic," leaving investors realizing they had been deceived.

Legislator Kao emphasized at the end of the statement that she would urge the Criminal Investigation Bureau to expedite the investigation of this case. In the future, she will also clarify responsibilities with relevant administrative agencies and plan legislative amendments if necessary to ensure the rights of the public.

In addition to exposing the scheme and making the public aware of the fraudulent methods, the two victim representatives at the press conference pointed out that Ronald Aai, the mastermind who claimed to be the "Asian Blockchain Master," is in Taiwan. When investors confronted him in Taichung, Ronald Aai threatened to delete all platform data if they dared to report to the police. Therefore, Legislator Kao reiterated yesterday that if he is not apprehended and prosecuted promptly, he may flee, leaving victims with no recourse.

During this press conference advocating for the public, Legislator Kao's analysis of cryptocurrency scams was thorough. In a previous interview, she expressed positive expectations for the development of blockchain technology and digital currencies.

Interview with Legislator Kao Hung-an: Expectations for Blockchain and Cryptocurrency

In May, Legislator Kao, formerly with the Big Data Office of Hon Hai, was interviewed. She shared her insights on blockchain and cryptocurrency:

Previously, Hon Hai established a blockchain investment fund and was selected by Forbes as one of the top 50 blockchain companies. For Hon Hai, blockchain technology is mainly applicable to supply chains and production lines. Due to Hon Hai's immense scale, the integration of blockchain technology could greatly help reduce management costs in the supply chain.

Regarding cryptocurrency, Legislator Kao believes that investing in traditional financial products requires a significant amount of time for research and observation. Especially with the high volatility of cryptocurrencies, it requires a great deal of effort to understand. Therefore, she currently does not engage in any investments, and her asset declaration is nearly blank.

Furthermore, compared to cryptocurrencies like Bitcoin, Ethereum, and USDT, Legislator Kao is more hopeful for the development of central bank digital currencies worldwide. She pointed out:

I am more looking forward to the development of stablecoins by various countries, including China, which has begun promoting the so-called digital renminbi from the central bank. I am delighted to hear that the Taiwan central bank has also started to promote it, but I am not sure why Governor Yang does not see the urgency. I believe it can be implemented in a limited scope to gradually verify its feasibility, which would be of great help to startups and fintech companies.