The Seoul Metropolitan Police Agency deployed a criminal investigation on June 12, which led to the search and seizure of two unnamed crypto currency exchanges. These efforts were made in the hope of dismantling a $41.5 million Ethereum Code criminal network.
According to Joongang Ilbo, the alleged criminal network promoted its business model as a multi-level marketing, or MLM, scheme. It’s believed that over 1,500 people had sent their cryptics to the con artists.
Kryptonian crime on the rise: Possibility of 2020 setting a new record
„Big profits“ promised with ETH’s investments
Reports indicate that the company’s CEO, identified by the name „Mr. Shin,“ was investigated and received a court order prohibiting him from leaving the country while the authorities conducted their investigation. The police indicate that Mr. Shin is one of at least 100 people under surveillance by the authorities.
15 people plead guilty to BTC scams through bogus auctions
Another suspect, known as „Mr. A,“ is also being monitored. As an executive of one of the exchanges, he allegedly promised „enormous profits“ for ETH’s investments.
The number of victims may exceed 1,500
Law enforcement is starting to make criminals doubt the dark web
As we go to press, 433 investors have filed complaints with the police, claiming they were unable to withdraw their funds from the plan. The lawyers who spoke on behalf of the victims said there could be 1,000 more people who have not yet approached the police.
Cointelegraph reported on June 2 that the value of illicit funds diverted through crypto-currencies during the first five months of the year amounts to an exorbitant US$1.4 billion.