Mr. Hsu, 45, led a fraudulent pyramid scheme that exploited the elderly, setting up a fake investment platform and app called “DuoDuo Blind Boxes.” They held investment seminars across Taiwan, encouraging people to participate by promising 3% profits if they resold blind boxes, pressuring them to become members and purchase USDT as a deposit.
Since 2021, this scam group has been targeting seniors, ostensibly luring them with ‘free meal seminars’. At these events, accomplices disguised themselves as instructors and took advantage of the elderly’s lack of knowledge about virtual currency trading to present investment opportunities on the ‘Blind Box Platform’.
Hsu and another individual, Mr. Guo served as the host of these investment seminars. In the middle of the meal, a guest lecturer was brought in and the atmosphere was heightened by explaining short-term investment methods for high returns. Instructors recommended signing up for the ‘DuoDuo Blind Box’ membership, purchasing USDT, and depositing it into the website or e-wallet to accumulate points.
The platform has allocated specific time slots each day for members to purchase these “blind boxes.” The price ranged from 300 to 2000 USDT. Members who purchase and resell blind boxes on the platform will earn 3% points. This cycle encouraged continuous deposits, but in reality, these blind boxes contained no actual product.
Initially, the platform processed withdrawals, but in March this year Hsu insisted on upgrading the system and stopped payments. Many members only realized after considerable time that they had been scammed, resulting in over 40 individuals reporting losses, totaling over NTD 10 million.
After a six-month investigation, authorities conducted raids in September and arrested one suspect, Chuang. In mid-December, they arrested Xu and seven others in Taipei, New Taipei, and Miaoli and confiscated cash, mobile phones, bank accounts, and promotional materials.
During the investigation, police confiscated a total of NT$850,000 in cash, 11 mobile phones, a bank account, and several investment brochures. (Image source: udn.com)
At the time of his arrest, Hsu acknowledged the illegality of the plan and expressed resignation over the inevitable outcome. Despite his foresight, authorities charged him and all of his accomplices with fraud.
The ‘Duo Duo Blind Box’ scheme is a stark reminder of the vulnerability individuals face, especially when it comes to the promise of quick and tangible returns. This incident highlights the need for strict regulation and public awareness campaigns against such financial fraud. The perpetrators’ disregard for the financial well-being of others, especially the elderly, highlights the importance of strict legal penalties to deter similar fraudulent activities in the future.
This appalling exploitation of older people highlights the urgent need to protect vulnerable people from financial fraud. The calculated manipulation of trust and lack of awareness of new investment schemes highlights the need for increased public education and stringent measures to root out these fraudulent practices. It is important that authorities not only prosecute perpetrators, but also actively educate the public to prevent future cases of financial exploitation.