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

South Korean crypto platform V Global is suspected of stealing more than 1.7 trillion won, about 1.5 billiondollars as entry 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 payment of 1.2 million won ($1,065) foreach invited participant and high percentages from the main investments, the company deceived mainly elderly people 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.

Subscribe to ForkNews on Telegram to stay updated on news from the world of cryptocurrencies