Fake virtual asset deposit site caught embazzling 500 billion won

[Anchor]

A group that created a fake virtual asset deposit site and solicited investments in overseas casino businesses has been handed over to the prosecution after embezzling over 500 billion won.

The number of victims has reached over 10,000, and the investigation revealed that there were no actual profit-generating businesses, and the investment funds were used to purchase yachts and luxury goods for the perpetrators.

Choi Hye-rim reports.

[Report]

An investment briefing was held in Daegu.

The office was packed with people.

There were no empty seats at the briefing held in Jeonju, either.

They promoted that if you entrusted your virtual assets, you would receive your principal back with a 20% profit in just 40 days.

[Investment briefing attendee/voice altered: "(There were) at least 40 to 50 people gathered. (Did they hold investment briefings often here?) It was almost open 24 hours...."]

The investment fraud group has been conducting investment briefings across the country, including their headquarters in Seoul.

The representative of the investment company, Mr. A, and others received over 500 billion won from more than 10,000 people over a period of one and a half years starting from January 2022.

They claimed to be investing in overseas casinos, but in reality, they were running a typical 'multi-level scam' or 'Ponzi scheme' by using the money from new investors to pay returns to existing investors.

Although it appeared that the promised interest was being paid normally on the fake deposit site, it was revealed that all the investment funds were deposited into Mr. A's account.

About half of the amount was used to repay some principal and interest, but there have been 490 complaints filed stating that they did not receive their money.

[Kang Jeong-seok/Head of the Financial Crime Investigation Unit, Seoul Metropolitan Police: "The embezzled funds were mostly used for the suspects' commissions and for high-priced products, yachts, and land purchases...."]

The police have arrested and transferred two co-representatives, including Mr. A, on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, and have transferred 40 others, including company executives, branch managers, and recruiters, without detention.

The police have seized 10.1 billion won in criminal proceeds and plan to search for additional profits.

This is KBS News Choi Hye-rim.