[Exclusive] Cryptocurrency 4 Trillion Fraud Group Plots in Group Chat: "We Can Just Create Another Exchange"

"New Exchange Plan Using Money Called Fraud," Mid-Level Executive A's Testimony
Method Identical to 'BBK Coin'

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] Testimonies have emerged that key executives of the cryptocurrency exchange V Global, which caused nearly 4 trillion won in damages through a recent cryptocurrency-related pyramid scheme scam, are planning to create a new exchange.

On the 3rd, A, a mid-level executive at V Global, testified that the core executives of V Global plan to use the money gathered through fraud to establish a new exchange. The new exchange is also intended to be created for a pyramid scheme similar to V Global. According to A, one key executive said in a KakaoTalk group chat of V Global executives, "If we gather a large amount of money through this pyramid scheme, we can just create another new exchange."

According to the testimony, the structure of the new exchange is also similar to V Global. The key executive said, "If we guarantee six times the principal, more people will come," and added, "It would be good to create it by adopting the promotion system where members are upgraded each time they bring in new subscribers." This means creating a typical pyramid-structured exchange.

V Global also deceived investors by promising to triple their money if they deposited 6 million won. It operated a promotion system. When joining V Global for the first time, one starts as a manager, but as they recruit more people, they rise through seven ranks in order: Coach, Master, Supervisor, Director, CEO, and Chairman.

The method of paying profits is also the same cryptocurrency system. They plan to use the same scheme as V Global, which issued a cryptocurrency called "V Cash" to distribute profits. A said, "A chairman-level executive openly said they plan to issue BBK Coin and distribute profits from it."

Since BBK Coin is actually being traded, caution is needed when investing. According to the cryptocurrency intermediary site CoinMarketCap, cryptocurrencies BitBlocks and BrickBlock use the ticker code BBK. While BrickBlock’s trading volume cannot be tracked, suspicious circumstances have been detected with BitBlocks. BitBlocks, which was priced around 1 won earlier this year, rose to 11.67 won on April 11 without any particular positive news. Notably, its trading volume increased 100-fold in one day and then returned to normal within a few days, showing abnormal behavior.

There are also testimonies that exchanges using pyramid schemes similar to V Global are rampant. The exchange BK Worldwide reportedly deceived investors by promising a 150% return if they deposited 6 million won. In particular, it used a typical pyramid scheme method, claiming that the more new people you bring in and register, the faster you can recover your principal and generate profits. However, on the 3rd of last month, it suddenly announced withdrawal difficulties, and victims are complaining that they cannot even recover their principal.

There is also a pyramid scheme method that makes it difficult to report by building trust and inducing investment. Unlike the existing pyramid schemes that simply promise profits, this method involves continuous phone calls and gift-giving to make victims dependent. Because of this dependence, actual reports do not follow, and victims are not even counted. In fact, Jubilee Ace, which suddenly blocked withdrawals around September last year, was found to have recruiters approaching victims under the guise of coincidence. Also, a person introducing themselves as the representative held daily investment-related lectures to deceive investors. One victim said, "Jubilee Ace is gone, but the same person is still using the same method," and lamented, "Scammers are changing exchanges and continuously producing victims."

In response, voices are calling for active reporting by victims and police investigations. Professor Hong Ki-hoon of Hongik University’s Business Administration Department said, "Without reports from victims, the police cannot exert their power," and added, "Since there is national interest, if reports occur, the police should actively investigate to prevent cryptocurrency-related scams."

This content was produced with the assistance of AI translation services.