June 15, 2021

South Korea crypto exchange V Global suspected of $ 1.5 billion fraud

South Korea crypto exchange V Global suspected of $ 1.5 billion fraud

South Korean crypto platform V Global is suspected of embezzling more than 1.7 trillion won, about 1.5 billion dollars as entrance fees.

Korean law enforcement officials accuse the crypto exchange of organizing a pyramid scheme involving more than 40,000 people from August 2020 to January 2021.

The police are confident that V Global worked on the principles of a pyramid scheme, offering monetary rewards for attracting new referrals.

Promising a payout of 1.2 million won ($ 1,065) forof each invited participant and high percentages of the main investment, the company cheated mainly the elderly and housewives who do not have sufficient knowledge of the cryptocurrency market.

The minimum registration fee was 6 million won (about $ 5300). Investors deposited their savings on the exchange in exchange for the promise of triple profits.

The police raided more than 20 offices related to the exchange, including the exchange headquarters in Seoul.

V Global is suspected of large-scale fraud. Multilevel marketing (MLM) companies must register with the Fair Trade Commission.

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