South Korean officials are investigating a complaint filed by 950 investors who claim to be victims of a crypto-related Ponzi scheme. According to the TV Chosun report, South Korean police are looking into reports that over 160 individuals are believed to have operated the alleged scam, known as Futurenet. The Futurenet team is also suspected of stealing almost 20 billion won ($16.66 million) from hundreds of investors in the country and transferring the money using cryptocurrency.
The investigation is still in the early stages.
The alleged crypto pyramid scheme operated in South Korea has stolen around 20 billion won ($16.66 million) from victims. Victims claim that they were tricked by buying an “advertising pack” initially using cryptocurrencies. No ads were acquired as a result of the purchase. The report stated that a police officer from the Seoul Seocho Police Station said that the investigation “is still in the early stages,” so no further details are known about the structure or the cryptocurrencies involved. No arrests have been conducted as of press time.
Crypto scams surge amid the COVID 19 pandemic.
Earlier, the Seoul Metropolitan Police Agency launched a criminal investigation on June 12 that led to the search and seizure of two unnamed cryptocurrency exchanges. The Federal Bureau of Investigation had earlier issued a warning about the potential surge in crypto-related scams. The FBI warned that scammers would impersonate local NGOs and several other things to scam their victims. Earlier, it was reported scammers in Canada impersonated police and intimidated and manipulated victims to pay a ransom in bitcoins. Singapore witnessed a surge in ransomware attacks where scammers encrypt victims’ systems and demand bitcoin or other cryptos in ransom with a promise to decrypt the data. Since the bitcoin has gained mainstream exposure, the number in crypto scams around the world, have also increased.