South Korean court takes down $20 billion bitcoin pyramid scheme: report
The South Korean incident is similar to a crackdown across the Yellow Sea in China earlier this week.
South Korean authorities have issued multi-million dollar fines to local two men for their involvement in the creation of a cryptocurrency pyramid scheme that saw them reap US$20 billion in illegal gains from investors.
Yonhap News reports that on April 19 an Incheon District Court served US$15 million and US$8 million penalties, respectively, to the two men for their roles in the illegal multi-level business.
The two individuals reportedly launched the scam three years ago, in 2015, engaging investors seeking high profit returns. The company promised investments in bitcoin but subsequently duped investors out of billions.
“The multi-level transaction is a risk to the socioeconomic order with mass production of many victims,” Judge Hwang Jin-jin said. Interpol is reportedly seeking the chairman of the company who managed investments.
The South Korean incident is similar to a crackdown across the Yellow Sea earlier this week. Chinese police arrested founders of a cryptocurrency pyramid scheme that allegedly stole $13 million from 13,000 investors.
Recently, there has been increased scrutiny of unlawful digital currency practices. On Wednesday, the United States Securities and Exchange Commission (SEC) subpoenaed cryptocurrency company Riot Blockchain.
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Earlier this month, the SEC filed a court order against purported blockchain company Longfin Corp, freezing more than $27 million in trading proceeds. Longfin’s stock soared 2000% in December after the company announced it was buying a blockchain business. The stock price rose to more than $70 late last year.
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