Business 8 months agoJasmine Solana
Yet another crypto pyramid scam reaped $20B in South Korea: report
The crackdown on cryptocurrency-related pyramid scams continues, this time featuring alleged swindlers from South Korea.
On Thursday, an Incheon District Court judge has fined two men accused of using a pyramid scheme involving fake virtual currencies to reap $20 billion from South Korean investors, Yonhap reported.
The two men, which initially received KRW26 billion ($24 million) from investors, built an illegal multi-level company that promised high returns for those who would invest in SegWit-Coin BTC (also referred to as Bitcoin legacy or Core).
One of the suspects is a 51-year-old man based in the Philippines, according to the report. That man, who served as head of the multi-level company, is allegedly in the Interpol watch list. In South Korea, he is facing a fine of $15 million for the alleged pyramid scheme, while his 62-year-old cohort is ordered to pay $8 million in fine.
“The multi-level transaction is a risk to the socioeconomic order with mass production of many victims,” said Judge Hwang Jin-jin, of the Incheon District Court 14.
Authorities across Asia have been beefing up their efforts in clamping down multi-level marketing schemes that bank on the surge of popularity of cryptocurrencies like SegWit-Coin BTC. This week, police in China arrested four people in the city of Xi’an who were accused of conning some 13,000 individuals out of $13 million in supposed investments. Investigators said the scam, which started in October 2017, revolved around the Da Tang Coin (DTC), an altcoin linked to a company called DTC Holding.
In the Philippines, a couple was charged with scamming 50 people into investing in SegWit-Coin BTC in 2017. Police said the husband-and-wife team convinced their victims to invest in a company called “NewG,” promising a 30% return on their investments every 15 days. The couple amassed an estimated $17 million from this scheme.
Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Satoshi Vision (BSV) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BSV is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
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