Prosecutors' Virtual Asset Task Force Launches Investigation into Delio and Others

The Seoul Southern District Prosecutors' Office Joint Investigation Team on Virtual Asset Crimes (Head: Chief Prosecutor Lee Jeong-ryeol) has launched investigations into three coin-related cases immediately after its establishment.

Joint Investigation Unit for Virtual Asset Crimes. Photo by Jinhyung Kang aymsdream@

On the 27th, the Seoul Southern District Prosecutors' Office announced that the Joint Investigation Team has been reassigned cases previously handled by the Financial Investigation Division 1, including the virtual asset deposit service companies Delio and Haru Invest, the Pica Project which issues Pica Coin, and Wemade, the issuer of WEMIX.

The Joint Investigation Team was established on the 26th with the purpose of protecting users from illegal and defective coins and new types of crimes emerging in the virtual asset market. The team plans to focus investigations on delisted coins, investment caution items, and coins with high price volatility.

Delio and Haru Invest, which operated coin deposit businesses promising high interest rates, suddenly suspended deposit and withdrawal services last month, causing controversy. Investors of Delio and Haru Invest filed complaints with the prosecution through the law firm LKB & Partners, accusing the company executives of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.

The Pica Project is suspected of issuing Pica Coin under the pretense of jointly owning famous artworks, engaging in false advertising, and artificially manipulating prices through market making (MM) to inflate the coin's value. Prosecutors have arrested and are investigating the co-representatives of the Pica Project, Song (age 23) and Sung (age 44), on charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.

Wemade is suspected of failing to properly disclose that more WEMIX tokens were circulated than the amount announced during issuance. Due to circulation issues, WEMIX was delisted (trading support terminated) from coin exchanges such as Upbit and Bithumb at the end of last year. About 20 WEMIX investors submitted a complaint to the prosecution in May, requesting an investigation into Wemade CEO Jang Hyun-guk. The prosecution conducted a search and seizure at Wemade headquarters on the 30th of last month.

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