Filed 5 Complaints with Prosecutors and Police... Coin Fraud 'Geunom' Changes Name and Scams Again

Virtual Asset Investment Victim Mr. O
First Complaint 2 Years Ago... Negligent Investigation
“Go to the Local Police Station,” They Said
Meanwhile, Changed Name and Committed Another Fraud Scheme

[Image source=Yonhap News]

Mr. Oh, who suffered losses from virtual asset investments, filed a complaint on the 20th with the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency against Mr. A, the CEO of a coin investment company, on charges of fraud and violation of the Act on the Regulation of Conducting Fund-Raising Business Without Permission. Over the past two years, this is the fifth time Mr. Oh has submitted a complaint to the prosecution and police against Mr. A. Including petitions and the Blue House national petition, the number of times he has reported the damage exceeds ten. Mr. Oh stated, "Even after Mr. A was sued in 2020, he established companies with different names and committed the same ‘fraudulent’ acts," adding, "If a proper investigation had been conducted over the past two years, this would not have happened."

Mr. Oh claims that the complacent attitude of the investigative authorities caused him to suffer greater losses. Although he first filed a complaint against Mr. A in August 2020, he believes there was no progress in the investigation as only the victims were investigated. He said, "When I submitted additional complaints, I was told to submit them to police stations in nearby neighborhoods, and even when I requested the case be sent to higher police organizations or the prosecution, they refused and just held onto the case. Victims, including myself, were treated like ‘crazy people.’"

According to Mr. Oh, Mr. A established another virtual asset consignment investment company last May. He attracted investors by promising not only principal guarantees on investments but also monthly dividends of 6-10% if they purchased cryptocurrency and transferred it to the company’s account. However, on the 17th, the company announced a suspension of transactions due to frozen funds, leaving investors unable to recover their investments. Mr. Oh said, "Both cases are the same method with different names," and added, "If the investigation had been conducted in time, the situation would not have escalated like this." It is reported that the police belatedly discovered evidence that Mr. A operated another company and committed ‘fraud,’ leading to a travel ban being imposed on him.

Mr. Lee (62) invested 35 million won in a virtual asset mining machine rental company, which then disappeared, causing him to suffer losses. Instead of going to the police, he reported the damage and sought help from the Financial Supervisory Service (FSS). Mr. Lee said, "Last month, I sent all related materials and damage reports to the FSS, but so far, I have only received comments that ‘not many similar victims are taking action,’ and there has been no response."

Kang Hyung-gu, Secretary-General of the Financial Consumers Federation, said, "The virtual asset market has become comparable to the stock market, but since the state has done nothing regarding legislation or investor protection, it must now actively take on a role in protection measures."

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