Owners of $24 Million Bitcoin Pyramid Scheme have been convicted in South Korea

South Korea Cryptocurrency News smartereum

Two South Korean individuals have been found guilty of creating a fraudulent bitcoin cryptocurrency scheme which they use to defraud investors. They were alleged to have amassed over 28 billion Won (about $24 million USD) from unsuspecting customers.

In a court ruling held at the Incheon District Court in Korean on April 19, the Judge Hwang Jin-Jin sentenced both unnamed men in a fine of $15 million and $8 million respectively.

According to local news source Yonhap, the two men started the pyramid scheme in 2015 to 2016 which has since raked in 16 billion won and 10.6 billion respectively, they subsequently built an illegal Philippine-based multi-level company by promising investors high returns through investing in bitcoin.

The translated report from Yonhap reveals Judge Hwang declaration during the ruling that, The multi-level transactions is a risk to disturb the socio-economic order and mass production of many victims.”

Recently, cryptocurrency frauds it seem is on the rise especially in Eastern Asia where scammers offer unrealistic returns hoping to lure unsuspecting victims to part with their money. Law enforcement authorities and regulators across various countries like Vietnam, China and the Philippines are now clamping down on illegal Ponzi or Pyramid schemes and are advising the general public to be wary of investing in multi-level schemes.

Earlier this week, Operators of a nationwide cryptocurrency pyramid scheme in China were apprehended by the police. The scheme has allegedly swindled about 86 million yuan ($13 million USD) from over 13,000 unsuspecting victims. This particular fraudulent scheme was uncovered by the Xi’An Police Department, the Economic Investigation Detachment in collaboration with the Public Security High-tech Sub-Administration and other departments in a new wave of crackdown on fraudulent cryptocurrency-related practices.

Also across the continent, the Enforcement and Investors Protection Department a section of the Philippines Security and Exchange Commission has issued a warning to fourteen cryptocurrency investment companies in the country to abstain from requesting funds from domestic investors.

Solomon Sunny is the market reporter for Smartereum, one of the global leaders in Ethereum, blockchain and currency news. He produces technical price updates on digital currencies and writes recent developments about blockchain.


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