Employee Imprisoned In A Recent South Korean Cryptocurrency Mining Fraud

  • The number of new Ponzi schemes has arisen and attackers are hacking into and stealing cryptocurrencies from wallets and addresses.
  • Per CipherTrace, around $1.4 billion were lost in the first five months of 2020 owing to various crypto-related scams and frauds.
  • Recently in South Korea, an employee from a mining operating company was taken in judicial custody.

2020 has been a year of crypto scams and frauds. The number of new Ponzi schemes has arisen and attackers are hacking into and stealing cryptocurrencies from wallets and addresses. According to cybersecurity company CipherTrace it is estimated that around $1.4 billion were lost in the first five months of 2020 owing to various crypto-related scams and frauds. Per reports, Recently a south Korean employee from a mining operating company was taken in judicial custody. The company was accused of large scale fraudulent activities leading to a fraud mining worth 300 billion won.

Korean Mining Company Employee Imprisoned

On the 19th of July, the employee of the company that participated in the fraud had been arrested and sentenced for imprisonment. The judge of the Incheon Court Trial, Judge Lee Sang-wook announced that the convict was sentenced to an imprisonment of a total two and a half years and chairman of the cryptocurrency mining company accused of violating rules and regulations regarding frauds.

The accused employee referred to as Mr. A has worked with the cryptocurrency mining operation company from May 1, 2017, to September 3, 2017. During his tenure in the company, he had received a total of approximately 331.3 billion South Korean Won from the victimized people as well as the vice-president and the chairman of the company.

Top Investors Were Only Incentivise While The Miners Were Deceived

The employee went on tricking people by saying that if they sign up as a member of the agency and bought a cryptocurrency miner. They will be able to run it and in return for all these, the members would be awarded 60% of the total mined cryptocurrency from the miners. Soon after luring the investors in a pyramidal scheme where the top investors attracted the new investors. Consequently, recommended privileges and mining allowances were only given to the top investors and the new one.

The convicted employer helped the chairman of the agency to skillfully carry out the plans to incentivize only the top investors and deceiving the miners and pretended that everything was operating normally.

Later, the vice-president and the chairman of the company fled abroad leaving the responsibilities of the miners to the top investors.

 

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