Gang Arrested for 110 Billion Won Fraud Claiming "300% Profit Guarantee" in Coin Investment

A group that deceived people by guaranteeing high returns on investments in virtual assets such as coins and embezzled investment funds worth about 110 billion won was arrested by the police.

On the 5th, the Changwon Western Police Station in Gyeongnam announced that they arrested 11 people including the mastermind in his 50s, Mr. Choi, and detained 11 others in their 40s without arrest.

According to the police, Mr. A and others are suspected of promoting investment companies and embezzling investment funds after establishing 208 multi-level marketing branch offices nationwide, including Seoul and Gyeongnam, from March to October last year.

The Intelligent Crime Investigation Team of the Investigation Division at Changwon Seobu Police Station in Gyeongnam is collecting evidence of the crime at the scene.
[Photo by Changwon Seobu Police Station]

They deceived victims by guaranteeing up to 300% returns on investments in virtual assets, collecting about 110 billion won in investment funds from approximately 6,610 people.

They recruited members by promising to pay a 10% commission on the amount invested by new members brought in by existing members or to pay 1.5% of the principal daily.

They introduced the company as a fintech comprehensive asset management company based on the real economy and enticed victims by claiming that their self-produced coin would be listed domestically and enter the Korean won market on overseas virtual asset exchanges, promising large profits.

Materials related to the investment company operated by the fraud gang. [Image provided by Changwon Seobu Police Station]

The group was found to have conducted a typical multi-level financial fraud (Ponzi scheme) by using the investment funds of later investors to pay commissions to earlier investors.

The coin they mentioned was a token they created themselves to build an economic ecosystem in the metaverse, and although the virtual asset exchange was officially registered, it was revealed that it was not a Korean won market where Korean won could be deposited and traded.

It is known that they did not take any actions to successfully list the coin on the Korean won market or to advance the business.

The group dispersed the investment funds through multiple bank accounts to launder money, and the embezzled funds were reportedly used for rental deposits and vehicle purchases.

Promotional post notified to the victims by the perpetrator,
[Image provided by Changwon Seobu Police Station]

Based on numerous complaints received, the police launched an investigation and arrested all members of the group, including the mastermind Mr. A, who was on the run, as well as accomplices involved in money laundering.

They confiscated about 2.1 billion won in criminal proceeds and prohibited the disposal of their assets such as rental deposits, deposit claims, and vehicles.

A police official said, “We will respond strictly to various financial crimes that infringe on the livelihood of ordinary people by exploiting their desperate desire to improve their economic conditions and the virtual asset investment craze, and strive to create a trustworthy investment environment.”

He added, “If investors are recruited with the bait of guaranteed principal and high returns in a short period, the possibility of investment fraud is very high. Please report any suspicious activities to the police or the Financial Supervisory Service.”

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