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Authorities in Tokyo unveiled a real estate-related scam worth $237 million, involving digital currencies. This scheme was allegedly uncovered while the Tokyo Regional Taxation authorities audited a company’s tax history in Taito Ward. The agency discovered that although the company reported annual sales of 10 million yen, there was a much larger company cash flow. In addition, over three years, three Chinese nationals sent 27 billion yen in crypto to the suspect Tokyo-based company to convert to yen. Instead, the now-embattled company chose to keep some of the yen in its own coffers as commission.
The Chinese nationals involved were acting on behalf of a third party. They were raising yuan from affluent Chinese investors who wanted a stake in Japanese real estate. This incident lends credence to why the People’s Bank of China banned crypto-related activities.
An earlier post from an Asian finance watchdog on the developing situation read:
“Tokyo discovered that three Chinese had transferred to Japan to purchase real estate through cryptocurrency (about 230 million USD). One tax expert said Tokyo should cooperate with China in cracking down on suspicious transfers of cryptocurrency.”
This is the latest in a growing string of crypto scams that are sweeping the industry. Illicit activities that use crypto encourage calls for increased regulation and scrutiny.
Image credits: Pixabay
