The CEO of a South Korean know-how agency, Wacon, has been arrested for allegedly masterminding a large-scale crypto rip-off that defrauded over 500 buyers.
CEO Byun Younger-oh, together with an confederate recognized as Yeom, orchestrated a Ponzi-style scheme by means of a platform referred to as MainEthernet.
Wakon, which reportedly has about 12,000 members, is suspected of working as a Ponzi scheme or multi-level advertising marketing campaign. The agency provides digital foreign money staking merchandise, together with tipping and mainnet companies, with out registering with monetary authorities. It has branches all through South Korea.
The scam, which allegedly amassed $366 million, primrly focused aged residents. Lots of them had been promised rates of interest between 45% and 50% on their Ethereum (ETH) deposits.
Rip-off particulars
The platform, which functioned as a digital pockets service, lured buyers with guarantees of safe and profitable returns. Nevertheless, by mid-2023, studies emerged that buyers had been unable to withdraw their funds.
Regardless of these issues, Byun assured buyers that the problems can be resolved inside months. By November 2023, indicators of the corporate’s collapse turned obvious as MainEthernet’s workplace in Seoul eliminated its signage.
The Seoul Central District Prosecutors’ Workplace has charged Byun and Yeom with fraud, and the case is predicted to go to trial quickly.
Prosecutors are persevering with to analyze the extent of the scheme, looking for to determine further victims and potential accomplices. Byun has denied involvement in any Ponzi scheme, claiming ignorance of such buildings. The investigation stays ongoing.
Native media retailers Cheonji Daily and iNews24 helped with this reporting.
