'Fraudulent Coin Ponzi Scheme' Embezzling 5.1 Billion Won... Coin Company CEO Arrested and Indicted

The prosecution arrested and indicted the CEO of a coin company who lied that domestic exchange listing had become impossible and defrauded approximately 5.1 billion KRW by exchanging it for worthless defective coins.

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On the 10th, the Cyber Crime Investigation Division of the Seoul Eastern District Prosecutors' Office (Chief Prosecutor Kim Young-mi) arrested and indicted Mr. A (31) on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud), among others.

Mr. A sold B coins to 102 victims, concealed the fact that they were preliminarily listed on C Exchange, and obtained financial gains through a 'Ponzi scheme' method by exchanging them for unissued defective coins. The victims lost the opportunity to acquire coins with economic value and also lost the chance to generate profits through coin trading.

In the case of coins, most of the information is unilaterally provided by the seller, and there is no separate verification agency. Because of this, it is difficult for ordinary investors to make clear value judgments, making them highly vulnerable to fraudulent acts.

A prosecution official stated, “We will continue to strictly punish illegal activities related to virtual assets that disrupt the virtual asset trading order and produce victims.”

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