The police in Seoul Metropolitan are now in charge of two South Korean crypto exchanges in order to discover those who were behind a crime committed using ETH.
The police in Seoul Metropolitan started an investigation on June 12 to uncover the acts of a group of fraudsters that committed a crime linked to Ethereum to the tune of $41.5 million. The names of the exchanges they held were not released to the public.
Joongang IIbo said the criminals pretended to be running a multi-level marketing scheme (MLM). It was gathered that at least 1,500 people responded positively to their demands.
The promise to get rich with ETH
Sequel to the investigation, the police have 100 names on their list to interrogate. One of them is Mr Shin who acted as the CEO of the MLM. As a result, Mr Shin has been prohibited from traveling to anywhere outside South Korea.
In addition, the police are also monitoring someone who calls himself “Mr. A”. His promises to make people rich were quickly believed based on his position as an executive of one of the exchanges the police are investigating.
There may be over 1,500 victims
Already, 433 investors have complained that their monies have remained on their accounts with no hope of withdrawing them despite so many trials. Their lawyers say 433 could only be a fraction and that more than 1000 may soon report.
Unfortunately, money laundering through cryptocurrencies is hitting record highs in recent times. From January to May, the amount of money stolen from unsuspecting victims through cryptocurrencies is not less than $1.4 billion.