Another cryptocurrency scam in Japan comes to light, and this time, it is a local university, Meijo Gakuin Educational Corporation, that has come under Japanese tax officials’ scrutiny for supposedly using institute’s funds to buy cryptocurrency.
As more and more cryptocurrency scams emerge in Japan, one only gets convinced that being one of the most crypto-friendly nations on earth has its downside.
As much as this country continues to provide a nurturing environment for cryptocurrency-related innovations and serve as a hub for advancements in the field, it also steals the spotlight for some of the biggest crypto scams. To fully capture the context, it is important to make mention of BITPoint cryptocurrency exchange, which suffered one of the biggest losses this year, losing twenty-eight million dollars ($28 million) in July.
This cryptocurrency scam in Japan amounted to over $1 million in loss
On Sep 10, one of the oldest newspapers in Japan, Mainichi Shimbun, reported an investigation into Meijo Gakuin Educational Corporation for allegedly embezzling vast sums of institute’s funds to buy cryptocurrency.
The investigation extended to the entities associated with the case, including the real estate brokerage company Sun Kikaku, to verify whether taxes on the misappropriated money have been eluded.
Apparently, the board members and others involved in the larceny were following instructions of the institute’s former chairperson, Meijo Gakuin, who asked to earmark funds close to nine hundred and thirty thousand dollars ($928,700). This set-aside amount was then purportedly used to buy cryptocurrencies.
The alleged embezzlement became known when the cryptocurrency transaction price took a nosedive causing the then chairperson Gakuin to face heavy losses.
An additional unaccounted two billion Japanese yen (JPY 2.1 billion) came into sight later which were found to be used as a deposit for a land sale executed by Sun Kikaku. Following the discovery, Gakuin decided to bow out from the post in June.
Meanwhile, the accused chairperson has refused to come forward or comment on the case. We will have to wait and watch how the Osaka probe officers bring this investigation to an end.