Bitcoin Scam Pyramid in South Korea Exposed
2 men from South Korea allegedly succeeded in creating a bitcoin pyramid scheme that managed to take around 21 billion Korean won ($21 million) from unsuspecting investors, according to local news source Yonhap.
On April 18, a judge presiding near Seoul’s Incheon District Court fined the scammers with a total of $23 millions. According to local news source Yonhap.
Those men started the scheme in 2014. They built a multi-level company by promising investors high returns through investing in bitcoin.
“The multi-level transaction is a risk to the socioeconomic order with mass production of many victims,”. The judge was cited to said in the report. Also that the fines were given based on the large amount of money they had taken from victims.
It is curious that this report comes just days after next-door China made significant efforts to strengthen the rules concerning these type of business models. Also started breaking down on multi-level marketing schemes that try to pass off as bitcoin investments.
Due to report made on Wednesday revealed that Chinese law authorities arrested the founders of a claimed nationwide cryptocurrency pyramid scheme, which sold the DBTC cryptocurrency at a price of 12 yuan ($0.47) per coin, guaranteeing a return of 83,000 yuan ($13,500) per day for an initial investment of 3.2 million yuan ($480,000). These scammers managed to garner more than $13 million from over 13,000 defrauded customers.