South Korean Prosecutors Shut Down $1.3M Crypto Mining ‘Scam’
Investigation appears to have originated with an investor complaint. Officials said they examined the suspect's bank accounts and found evidence of "large amounts of money being repeatedly deposited and withdrawn."
Cryptocurrency Mining Scam Mastermind Gathers Over $4M
Officials say the individual was a male aged "in his forties." They say he "gathered investments" from "September 2021 to August 2023."
The man allegedly embezzled $1.3 million in "investment funds" from one of the alleged victims.
Investigators think the man gathered over $4.1 million in "capital contributions" from at least nine investors.
Prosecutors think that the $1.8 million "embezzlement" constitutes fraud. They have also pressed charges under the nation's quasi-investment advisory services-related laws.
The Seoul Western District Prosecutors' Office said it had charged the man with violating the Specific Economic Crimes Act, in addition to other offenses.
Officials claimed the "scam" used Ponzi methods, whereby older investors were paid using newer investors' money.
The prosecution said that the man had actually "not conducted any cryptocurrency-related business at all."
The investigation appears to have originated with an investor who filed a complaint. This in turn seems to have sparked an official probe that uncovered scores of similar cases.
Officials said they examined the suspect's bank accounts and found evidence of "large amounts of money being repeatedly deposited and withdrawn."
Prosecutors responded by filing for an arrest warrant. A prosecution spokesperson said:
"We will act swiftly to prevent similar damages. We will do our best to ensure we punish the defendant with a sentence appropriate for the nature of this crime.
