[The Swamp of Bad Coins] "Gangnam Land and Bitcoin Are the Same" Visiting a Cryptocurrency Investment Seminar...

Don't Trust the Media or Experts... Absurd Product Claims "Triple Your Principal in 16 Months"
Ignoring Mask Rules and Gathering Elderly and Job Seekers for Promotion

Presentation materials from a cryptocurrency investment seminar held on the 13th at a building near Seoul National University Station. Two representatives from the investment company introduced products resembling multi-level marketing schemes targeting elderly people.

[Asia Economy Reporter Gong Byung-sun] In an office located in a building without sunlight in front of Seoul National University Station, elderly people sat close together to listen to a cryptocurrency investment briefing despite the implementation of social distancing Level 4 due to the spread of COVID-19. A man who had removed his mask conducted the session skillfully, eliciting responses from the elderly. The man said, "Sir, think about the land in Gangnam in the past. It was worth very little per pyeong, but how much has it increased?" and added, "Gangnam land and Bitcoin are the same." The elderly nodded and repeatedly agreed, saying "That's right" to the intuitive analogy. The man raised his voice, saying, "Never trust the media or experts. If you trust only us, you can soon become rich in Gangnam."

With the deadline for reporting under the amended Act on Reporting and Using Specified Financial Transaction Information (the Special Financial Information Act) approaching in less than two months, unknown cryptocurrency investments or fraudulent coins are rampant. Despite the implementation of Level 4 social distancing due to COVID-19, gatherings were held in violation of quarantine rules to promote fraudulent coins.

On the 13th, cryptocurrency investment company A held an investment briefing at an office near Seoul National University Station targeting four elderly people and a reporter disguised as a job seeker. According to current quarantine rules, private gatherings are limited to four people or fewer, and for door-to-door sales, one person must be seated per 8㎡, requiring a spacious area, but the office was extremely cramped. The four elderly sat within arm’s reach, and the investment company representatives introduced products loudly without wearing masks.

The product details were absurd. They claimed that the principal would triple in 16 months. The basis was not concrete. They said they earned 10% investment returns daily through an automated trading program but did not demonstrate it. Furthermore, they confidently claimed that if an exchange is established within the year, the investment value would increase further. According to the amended Special Financial Information Act, cryptocurrency exchanges must meet conditions such as real-name accounts to operate from September, but this was not explained either.

The explanation focused on how to increase investment returns. When the principal is deposited, dividends are received periodically. However, the core was a multi-level marketing scheme. Each time a new person is recruited, 10% of the investment amount is received as a commission. Moreover, if many people are recruited and one reaches the top tier of the multi-level marketing, they promised a luxury sports car as a reward. The investment company hinted, "Besides sports cars, you can also receive watches, cash, or Bitcoin."

The process of receiving investment returns was complicated. They deliberately separated accounts for investment dividends and multi-level marketing profits, and within those, they also separated commission accounts. Additionally, each account had different restrictions, and the reasons were unclear, making it difficult to understand in a short time. However, the man giving the presentation repeatedly said, "Not purchasing Bitcoin, which is the trend of the times, is an ignorant choice," and "If you listen to my presentation, you will inevitably understand at once." The elderly listening to the presentation responded, "Maybe because the presentation was very good, it was easy to understand."

Company A emphasized that all information must be received from the company. The man explained, "The vested interests are blocking ways for ordinary people to become rich," and "This is why you should not trust the media and experts but trust us." After the presentation, an elderly man who introduced himself as living in Bupyeong, Incheon, ran up to the man and asked, "There are many people in Bupyeong who want to become rich, so please come and share good information."

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