The South Korean authorities have formally accused Byun Young-oh, the CEO of Wacon, and Yim Mo-soo, the Vice Chairman, of masterminding a crypto scam valued at more than 500 billion won (around $365 million).
The scam specifically targeted elderly adults by making fraudulent claims of substantial profits. It affected more than 10,000 people and resulted in substantial financial losses for hundreds of victims.
Wacon, which operated throughout South Korea, stands accused of orchestrating a Ponzi scam involving over 12,000 subscribers. The company provided “crypto staking products” via an unregistered service named “MainEthernet.”
Investors were assured substantial returns, including a “100% interest” and revenues generated by a “casino-AI platform,” but ultimately did not receive their deposits back.
In June 2023, investors incurred substantial financial losses as the corporation ceased to fulfill its obligations of paying interest and returning the initial investment, resulting in the loss of billions of won. Authorities initiated an investigation into Wacon, a company that repeatedly changed its platforms, resulting in investors having to move funds and seek new members.
Byun and Yim were indicted by the Seoul Central District Prosecutors’ Office on charges of “fraud and fraudulent receipt of funds.” According to the inquiry, the company deceived around 500 investors, resulting in a loss of 54 billion won, equivalent to nearly $39 million.
Additionally, the company was implicated in the fraudulent acquisition of approximately 500 billion won ($365 million). The anticipated damage amounts to 1 trillion won, encompassing both Wacon’s losses and investments from other stakeholders.
This instance underscores the substantial hazards inherent in the Bitcoin market, particularly for individuals who are not well-versed in it. The focus on senior investors highlights the necessity for more stringent rules and heightened public consciousness in order to safeguard potential victims from comparable fraudulent activities.
The indictment of Byun and Yim acts as a cautionary message to other deceitful businesses operating in the crypto industry.
