One of Korea’s crypto exchanges has been accused of defrauding 40,000 people, including local homemakers and even older people. People suffered losses totaling more than 1.7 trillion won, or 1.5 billion.
The V Global crypto exchange was at the core of the scandal. Police in Gyeonggi Province reported ransacking the trading platform’s headquarters, raiding 22 other “offices” across the country, and freezing 240 billion won (about $214 million). According to Korean law enforcement agencies, the CEO of the crypto exchange, also known as LEE, raised funds without the permission of South Korean regulators.
Many of the exchange’s assets have been frozen as part of the investigation.
Representatives of the trading platform earned $1.5 billion from the summer of 2020 to the winter of 2021. The majority of those who were harmed due to the fraud were people with no prior experience trading cryptocurrency properties. The cybercriminals’ key pledge was to triple the investment rate, and as a “bonus,” they pledged 1.2 million won (approximately $1,060) for each participant who participated.
Since the police had no doubts that they were dealing with another fraudulent pyramid scheme, they wanted to seize the previously frozen $214 million. But, in the face of $1.5 billion in damages, will people be eligible to claim compensation?