[Asia Economy Reporter Kim Hyung-min] The police are investigating suspicions that so-called 'investment leading room' fraud groups colluded with cryptocurrency issuing companies to manipulate virtual currency prices.
According to the police on the 7th, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency conducted a search and seizure of the residences of three executives, including CEO A of the cryptocurrency issuing company, on the 5th, securing PCs and electronic data.
They are suspected of colluding with the investment leading room fraud group from September to November last year to artificially manipulate cryptocurrency prices, earning about 13 billion KRW in price differences.
Earlier, the police arrested a group at the end of last year who attracted investors by promising "high returns through virtual currency price manipulation" in the investment leading room and have continued the investigation. According to the police, they encouraged investors to purchase virtual currencies by claiming to know when the cryptocurrency prices would rise through the issuing company. However, the value of the virtual currencies repeatedly plummeted, and most investors suffered significant losses.
Subsequently, after the victims filed complaints with the police accusing the investment leading room group of fraud, violations of the Electronic Financial Transactions Act, and the Capital Markets Act, the police investigation began.
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