According to information revealed by the police, a Japanese manager of the Ripple cryptocurrency exchange was arrested on Wednesday for swindling a whopping ¥1.4 million ($12,470) from an investor. As per the investors, this marked the first arrest made in Japan on account of Ripple’s digital tokens issued by a venture company operating in U.S. formally known as “XRP”
The 31 year old Yuki Takenaka, who founded a company dealing in Ripple has been brought under the suspected radar of defrauding a male depositor of ¥1.4 million in Miyagi Prefecture during March 2015. He is known to have collected the money although his firm had already collapsed at that time without any probability of issuing refunds. The malicious Kyoto resident has already admitted to a lion’s share of the charges as per police information.
The cryptocurrency exchange platform was established in Hamamatsu, Shizuoka Prefecture during May 2014 however users could no longer establish contact with Takenaka or withdraw cash from the exchange from around March 2015. His company is known to have raised its requisite capital by issuing written acknowledgements of debt or IOU slips to users in exchange of money which served as the backbone of Ripple’s online transactions. Users could either convert these notes into cash or exchange the same with Ripple. Investigation revealed that Takenaka duped a dozen users of ¥10 million by advertising that his exchange platform does not charge any commissions. He is also known to have conducted shady dealings wherein fictitious IOU’s worth ¥120 million were issued to unsuspecting depositors. The police have decided to conduct a detailed search in Takenaka’s home along with some other places in Hamamatsu.
Standing third in line to Bitcoin having a market cap of over ¥10 trillion and Ethereum having a market cap of over ¥3 trillion, Ripple’s market share stood strong at over ¥1 trillion. In stark contrast to Bitcoin which is being used to enter into real estate transactions off late, Ripple cannot be used in making merchandise purchase. This dynamic cryptocurrency specifically caters to international payments and has a track record of been traded online mostly for speculative purposes.
Also Read: Ripple CEO Says Government’s ICO Regulation Is Good
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