Ponzi

Celsius

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<p class="is-style-lead">The CEO of a South Korean technology firm, Wacon, has been arrested for allegedly masterminding a large-scale crypto scam that defrauded over 500 investors.&nbsp;</p>
<p>CEO Byun Young-oh, along with an accomplice identified as Yeom, orchestrated a Ponzi-style scheme through a platform called MainEthernet.&nbsp;</p>
<p>Wakon<a href="https://www.newscj.com/news/articleView.html?idxno=3160229" target="_blank" rel="noopener noreferrer nofollow">,</a> which <a href="https://www.newscj.com/news/articleView.html?idxno=3160229" target="_blank" rel="noopener noreferrer nofollow">reportedly</a> has about 12,000 members, is suspected of operating as a Ponzi scheme or multi-level marketing campaign. The firm offers virtual currency staking products, including tipping and mainnet businesses, without registering with financial authorities. It has branches throughout South Korea.</p>
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   <p lang="en" dir="ltr">Crypto Chaos: Wacon CEO Nabbed for $366M Rug Pull!<br><br>Big news from Seoul as the Wacon CEO, Byun Young-oh, faces charges for running an epic Ethereum-themed scam worth $366 million.<br><br>The fraud reportedly ensnared 500+ investors, mostly boomers, promising 45% gains in a classic… <a href="https://t.co/JEaxgo2DPs" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/JEaxgo2DPs</a></p>— Mario Nawfal’s Roundtable (@RoundtableSpace) <a href="https://twitter.com/RoundtableSpace/status/1822901278365684047?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">August 12, 2024</a>
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<p>The <a href="https://crypto.news/tag/scam/" data-type="link" data-id="https://crypto.news/tag/scam/" target="_blank" rel="noopener noreferrer nofollow">scam</a>, which allegedly amassed $366 million, primrly targeted elderly citizens. Many of them were promised interest rates between 45% and 50% on their Ethereum (<a href="https://crypto.news/price/ethereum/" data-type="link" data-id="https://crypto.news/price/ethereum/" target="_blank" rel="noopener noreferrer nofollow">ETH</a>) deposits.</p>
<p>You might also like: <a href="https://crypto.news/celsius-demands-billions-of-dollars-from-tether-whats-going-on/" rel="noopener noreferrer nofollow"> Celsius demands billions of dollars from Tether: What’s going on </a></p>
<h2 class="wp-block-heading" id="scam-details">Scam details</h2>
<p>The platform, which functioned as a digital wallet service, lured investors with promises of secure and lucrative returns. However, by mid-2023, reports emerged that investors were unable to withdraw their funds.</p>
<p>Despite these concerns, Byun assured investors that the issues would be resolved within months. By November 2023, signs of the company’s collapse became apparent as MainEthernet’s office in Seoul removed its signage.</p>
<p>The Seoul Central District Prosecutors’ Office has charged Byun and Yeom with fraud, and the case is expected to go to trial soon.&nbsp;</p>
<p>Prosecutors are continuing to investigate the extent of the scheme, seeking to identify additional victims and potential accomplices. Byun has denied involvement in any Ponzi scheme, claiming ignorance of such structures. The investigation remains ongoing.</p>
<p>Local media outlets <a href="https://www.newscj.com/" target="_blank" rel="noopener noreferrer nofollow">Cheonji Daily</a> and <a href="https://www.inews24.com/view/1751744" target="_blank" rel="noopener noreferrer nofollow">iNews24</a> helped with this reporting.&nbsp;</p>
<p>You might also like: <a href="https://crypto.news/thailand-introduces-sandbox-for-testing-crypto-services/" rel="noopener noreferrer nofollow"> Thailand introduces sandbox for testing crypto services </a></p>

South Korean CEO arrested in $366m crypto scam

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