Cracking Crypto “Second-Time Scams”! Bit Trust teams up with the Criminal Investigation Bureau, while ShuiFeng Dao collaborates with both public and private sectors to teach defense tactics

The Taiwan FinTech Association (TFTA) held an online forum in June titled “Cracking Down on Methods Used in Virtual Asset Scams,” hosted by Zheng Guangtai, founder and CEO of BitoGroup, alongside Investigation Team Director Hong Chengqi from the Criminal Investigation Bureau and well-known blockchain YouTuber Shuifeng Dao. From three perspectives—crypto exchanges, law enforcement agencies, and public education—they broke down new types of technology scams such as “second-time scams” and shared defensive know-how together.
(Background recap: The Taiwan Virtual Currency Association was officially established: Zheng Guangtai of BitoGroup was appointed as chairman of the board of directors; Xiao Yunzong of XREX was appointed deputy chairman of the board of directors.)
(Additional context: A complete interpretation of Taiwan’s crypto-asset special law, the Virtual Asset Service Act: exchanges move into a licensing regime.)

Table of Contents

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• Shuifeng Dao breaks down the “second-time scam” trap
• BitoGroup’s Zheng Guangtai: Exchanges deploy a technology defense line
• Hong Chengqi from the Criminal Investigation Bureau: “Luring the snake out” counter-strategy rules
• Full-scale prevention through public-private collaboration, jointly safeguarding digital assets
• About BitoGroup

Key Highlights

＊This article is a press release provided by BitoGroup.

In June, the Taiwan FinTech Association (TFTA) held an online forum titled “Financial Cybersecurity and Anti-Scams: Cracking Virtual Asset Scam Methods,” hosted by Zheng Guangtai, founder and CEO of BitoGroup. He teamed up with Hong Chengqi, Investigation Team Director of the Criminal Investigation Bureau, and the well-known blockchain YouTuber Shuifeng Dao. From three major perspectives—crypto exchanges, law enforcement agencies, and public education—they delved into and dismantled new types of technology scams, jointly building the strongest financial defense line.

Shuifeng Dao breaks down the “second-time scam” trap

Shuifeng Dao said that the ultimate form of virtual asset scams is “second-time scams.” The operations of illicit groups typically go through four stages: first, after initially offering victims small profits, they urge them to invest large sums of money to obtain high returns; in the middle and later stages, they refuse withdrawals and fabricate excuses such as tax payments and margin requirements to demand top-ups; then they induce victims to move their funds to malicious apps or websites that are difficult to distinguish from legitimate ones; finally, they isolate the victim, preventing them from seeking help from family or the outside world, and then impersonate lawyers or hackers to claim they can recover the funds—luring victims into the abyss of a second-time scam.

BitoGroup’s Zheng Guangtai: Exchanges deploy a technology defense line

Zheng Guangtai, founder and CEO of BitoGroup, explained that illicit actors often carry out complex scams by exploiting information asymmetry. As a compliant exchange platform, BitoGroup has invested heavily in deploying technological defense-in-depth measures, including importing international-grade KYC modules to effectively identify and monitor customer identities, implementing anti-money laundering (AML) and counter-terrorism financing (CFT) requirements. At the same time, it deploys suspicious transaction monitoring systems to proactively detect abnormal behavior, and its customer service team provides phone check-ins for high-risk users.

For cross-domain collaboration, exchanges have connected with authorities and bank reporting systems to share intelligence on suspicious fund flows and fully cooperate with legal authorities to handle abnormal accounts. Zheng Guangtai reminded the public to make good use of the security mechanisms provided by the platform—such as Passkey and two-factor authentication (2FA)—to independently enhance account security protection.

Hong Chengqi from the Criminal Investigation Bureau: “Luring the snake out” counter-strategy rules

Hong Chengqi, Investigation Team Director of the Fraud Crime Prevention Center of the Criminal Investigation Bureau, analyzed that in virtual currency scams, more than 70% are “fake friendship combined with investment.” Scam groups often spend months chatting to build trust, then guide victims step by step to buy USDT stablecoins on domestic compliant exchanges and transfer them to illicit wallets. Hong Chengqi dispelled a common misconception: many victims’ assets did not disappear because their wallets were hacked; instead, victims lacked security awareness and accidentally leaked their private keys or mnemonic phrase screenshots, or blindly clicked to approve malicious smart contract authorizations—essentially “handing over the keys to the safe with their own two hands.”

Regarding prevention and counterattack strategies, Hong Chengqi advised that the public can go to the National Police Agency’s “Anti-Fraud Dashboard” to check the latest scam cases. If they encounter a suspicious wallet address, they can also use on-chain tools to verify whether the address has been flagged as high risk. If you discover you’ve been scammed, do not confront the scammer immediately, as it may lead them to block you and destroy evidence. It is recommended to maintain your usual persona, pretend that your funds are locked, and use the other party’s greed to proactively propose in-person cash exchange, thereby coordinating with investigators and police to “lure the snake out” during the handover.

Public-private collaboration for comprehensive defense, jointly safeguarding digital assets

Zheng Guangtai emphasized that combating crimes involving virtual assets cannot be done alone; only through public-private collaboration among exchanges, law enforcement agencies, and public education—along with the public building scam-awareness and defense concepts—can a truly secure digital asset environment be created. As the chairman of the board of directors of the Virtual Asset Association, Zheng Guangtai also previewed that domestic industry players will import the international Travel Rule. By collecting and verifying information of the sender and receiver, they will strengthen transaction monitoring, effectively prevent money laundering and terrorism financing risks, and further improve transparency in the financial system.

Frequently Asked Questions

What is a virtual asset “second-time scam”?

A second-time scam is when, after victims are already tricked, scam groups impersonate lawyers or hackers claiming they can recover the money that was stolen, luring victims back into another trap. Shuifeng Dao said this is the ultimate form of virtual asset scams and also the final step in a four-stage operation.

What should I do after discovering I’ve been targeted by a virtual asset scam?

Hong Chengqi of the Criminal Investigation Bureau advised that after you realize you’ve been scammed, you should absolutely not confront the other party immediately, to avoid them blocking you and destroying evidence. You can maintain your usual persona, pretend that your funds are locked, use the other party’s greed to propose exchanging cash in person, and coordinate with investigators and police to “lure the snake out.”

About BitoGroup

BitoGroup was founded in 2014. It is committed to making it possible for blockchain to enter everyone’s daily life in the simplest way, and helping enterprises and consumers enter the Web3 era. BitoGroup uses blockchain and high-frequency trading technologies to actively build an innovative enterprise-grade virtual asset core brand, “Bito.Enterprise,” including stablecoin settlement, exchanging points for cryptocurrencies, and cryptocurrency payments. BitoPro, a cryptocurrency exchange, has completed the Financial Supervisory Commission’s “Registration for Anti-Money Laundering of Businesses or Personnel Providing Virtual Asset Services,” providing crypto wallet and trading services, and it also supports fiat on/off ramps such as transferring money, buying via convenience stores, or exchanging points for cryptocurrencies. Official website: https://www.bitopro.com