The organizers of the financial pyramid, promising to invest clients’ funds in bitcoin, arrested in South Korea

Several residents of the South Korean province of Jeonbuk have been arrested on suspicion of organizing a massive financial pyramid. Writes about it Hankyoreh.

The victims of the group were middle-aged investors poorly versed in financial markets and cryptocurrencies. The criminals promised to invest their money in bitcoin and guaranteed a 200% yield in the short term.

Obviously, a person who understands that the bitcoin market is not controlled by the central authorities and is characterized by increased volatility, could guess that the promise of such a high yield cannot be true. However, the victims of criminals were people aged 40 to 60 years old who did not have basic knowledge and experience in working with cryptocurrencies, which allowed them to steal about $ 38 million in less than 2 years..

Jongbuk police have arrested seven suspects who are charged with multiple counts, including money laundering and investment activities on behalf of the company without a license. The investigation was initiated after several investors reported that they were victims of fraud and lost a total of $ 4.1 million.

According to police, more than 3,900 investors have become victims of the criminal scheme, attracted by the rapid growth of the bitcoin exchange rate this year, although in reality the group has not invested their clients’ money in cryptocurrency..

One of the detainees said that they initially planned to open an investment company in order to help investors who want to invest their money in cryptocurrencies. However, over time, the group began to use the accumulated client base to build a multi-million dollar financial pyramid..

Photo: issaro prakalung

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