Cash News
A South Korean CEO has reportedly been arrested for allegedly orchestrating a massive Ponzi scheme that defrauded investors of an estimated $366 million. According to a report in Cryptonews, Byun Young-ohthe head of The songa cryptocurrency platform, is accused of running the scheme alongside an accomplice named Yeom.
Wakon, with approximately 12,000 members, offered virtual currency staking products without the required financial registration with authourities.The company, which operated has across South Korea, targeted elderly citizens. The company promised senior citizens exorbitant returns of up to 45% to 50% on Ethereum deposits. Wakon has branches throughout South Korea.
The scheme unraveled in mid-2023 when investors were unable to withdraw their funds. Despite assurances from Byun, the company’s collapse became evident by November when its Seoul office was shuttered.
Wakon, with approximately 12,000 members, offered virtual currency staking products without the required financial registration with authourities.The company, which operated has across South Korea, targeted elderly citizens. The company promised senior citizens exorbitant returns of up to 45% to 50% on Ethereum deposits. Wakon has branches throughout South Korea.
The scheme unraveled in mid-2023 when investors were unable to withdraw their funds. Despite assurances from Byun, the company’s collapse became evident by November when its Seoul office was shuttered.
Prosecutors have charged Byun and Yeom with fraud and are investigating the extent of the scheme. While Byun has denied any wrongdoing, claiming ignorance of Ponzi schemes, authorities are working to identify additional victims and potential accomplices.
In a similar incident, the US Securities and Exchange Commission charged an crypto trading company with defrauding 200,000 investors worldwide. Continuing its crypto fraud crackdown, the SEC has charged NovaTech, NovaTech, its executives, and affiliated promoters over a multi-level marketing fraud scheme that generated $650 million in digital assets.