The South Korean authorities have accused the V Global platform of creating a cryptocurrency pyramid and deceiving more than 40,000 users. The police confiscated about $ 214 million from the organizers of the scam.
According to media reports, police raided 22 offices that may have been linked to the South Korean platform V Global, including its headquarters in Seoul. V Global has positioned itself as a cryptocurrency exchange, being called the parent company of well-known South Korean exchanges, including Upbit.
V Global is accused of organizing a cryptocurrency pyramid and conducting illegal transactions, during which large sums of money were stolen from investors. The site’s management promised high returns to potential investors if they invest in their fictitious trading platform. Thus, since August 2020, the organizers of the fraudulent scheme have managed to defraud more than 40,000 investors who have lost hundreds of millions of dollars.
During a police raid, V Global was confiscated in various assets worth about $ 214 million. A Seoul court ordered a freeze of the seized assets. The identity of the CEO of V Global remains unknown, but local media allegedly managed to find out that he was a certain citizen named Lee, who could sell cryptocurrencies using multilevel marketing (MLM). The V Global website is no longer available. Site visitors are shown a message about technical work, which will be completed within four hours. However, this message “hangs” on the site for more than a day.
The South Korean authorities are especially closely monitoring multi-level marketing projects, especially if they are related to cryptocurrencies. According to local law, such firms must be registered with the Korean Fair Trade Commission and must have a valid product.
In April, regulators in South Korea announced that they would tighten the fight against illegal cryptocurrency transactions in the country due to the rapid development of the digital currency market. Recently, Seoul traders also “got” – the tax authorities of Seoul confiscated crypto assets from them in the total amount of $ 22 million for tax evasion.
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