40s Man Arrested and Indicted for Embezzling 1.8 Billion Won Using Cryptocurrency Mining Business Scam

'Promising High Returns' to Deceive Victims

A man in his 40s who deceived investors by promising principal and high returns on investments in a cryptocurrency mining machine business, thereby embezzling hundreds of millions of won, has been indicted while in custody.

On the 26th, the Criminal Division 4 of the Seoul Western District Prosecutors' Office (Chief Prosecutor Yeo Kyung-jin) announced that Mr. A was indicted in custody on charges of violating the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (fraud) and the Act on the Regulation of Similar Receipt of Money (illegal fundraising).

Mr. A is accused of soliciting investors for the cryptocurrency mining machine business from September 2021 to August 2023 by luring them with promises of principal and high returns, receiving approximately 1.8 billion won in investment funds and about 5.8 billion won in contributions.

Although Mr. A did not conduct any cryptocurrency business at all, he promised to return high monthly profits of 3-8%, and used a so-called 'Ponzi scheme' method by receiving investment funds from later investors to pay profits to earlier investors.

[Image source=Yonhap News]

The prosecution supplemented the investigation on a case that had been referred without detention with only one identified victim. Through this, they uncovered the scale of contributions received through the illegal fundraising scheme and the number of investors, and directly detained the defendant.

The prosecution stated, "We will continue to respond swiftly and strictly to illegal fundraising activities and other crimes causing widespread harm to ordinary citizens to prevent similar damages," and added, "We will thoroughly maintain the prosecution to ensure that the defendant receives a sentence commensurate with the crime."

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