Japanese Police to Arrest 12 BTC Scammers

Men "bought" $1.7M worth Bitcoin coins with fake fiat money
19 April 2018   1304

Police Tokyo and Hyogo arrested a group of 12 people who allegedly organized a fraudulent scheme with bitcoins for 190 million yen ($ 1.7 million). This is reported by Cointelegraph with reference to local news publications.

On July 25, 2017, a transaction took place at the Tokyo hotel, during which fraudsters handed over 200 million yen ($ 1.9 million) in fake banknotes to a man who introduced himself as an agent of the head of the company.

After the agent confirmed the transfer of money, to the cybercriminals account on the Yokohama exchange bitcoins worth 190 million yen were transfered. Later, scammers withdrew the resulting bitcoins in Fiat, after payment of commissions received on hand about 170 million yen.

The group was led by 32-year-old Kentaro Yagihashi. Seven suspects were arrested on April 10, another five - April 16. They all deny their guilt.

According to the publication Tokyo Reporter, the victim told the police that he went to this deal to avoid paying commissions on the exchange kriptovalyut.

Israeli BTC Investors to Face Catch 22

They need to pay taxes from Bitcoin investing in order to avoid their property arrest, but banks don't take their money due to AML issues
06 August 2019   132

Bitcoin investors in Israel are faced with the impossibility of paying taxes, as local banks refuse to accept funds received from the sale of cryptocurrencies because of the risks of money laundering and terrorist financing. About this writes the local edition of Haaretz on August 6.

Bitcoin is not recognized as a currency in Israel, therefore, individuals must pay 25% of the income from cryptocurrency trading to the treasury, and legal entities - 47%.

Investor Ron Gross told the publication that he acquired bitcoins in 2011 and reported his income to the tax office. In 2017, the bank that served Gross began to refuse to accept funds received from the sale of bitcoins. The investor met with representatives of the bank to demonstrate to them a 70-page history of bitcoin transactions as confirmation of the origin of the funds, but failed to convince them.

The tax authority is aware of the problem, but they say the ball isn’t in their courts. I’ve tried working with almost all the banks, but the minute they hear the word ‘Bitcoin’ they freeze up.
 

Ron Gross

Bitcoin investor from Israel

 

Since Gross was unable to pay taxes on time, his bank account, home, and even scooters were arrested. According to the investor, the tax authorities know about the problem, but can do nothing.

According to Haaretz, the tax office is aware of $ 86 million in unpaid taxes on income from cryptocurrency trading. It is possible that the real amount may be significantly higher.

Roy Arav, another Bitcoin investor, kept the proceeds from trading Bitcoin in an account with Israeli bank Discount under the control of the Bit2C exchange. The bank refuses to transfer money to Arava’s personal account under the pretext that its politicians forbid it to transfer funds related to virtual assets to client accounts due to the risks of money laundering and terrorist financing.

Arav also could not pay taxes and was forced to sue the bank. According to the investor, the authorities entered his position and granted him a deferral of time for the consideration of the claim.