[Exclusive] "Deposit Coins and Get 20% Monthly"... Gang Embezzled 3 Billion Won

Investigation of 15 Suspects for Fraud and Illegal Fundraising
Claims of Up to 600 Million Won in Damages
Police "Will Determine Exact Damage Scale After Investigation"

[Asia Economy Reporter Jang Sehee] A group that deceived investors by promising to pay up to 20% monthly returns on the principal when entrusting coins has come under investigation for embezzling about 3 billion won.

On the 16th, according to a comprehensive report by Asia Economy, the Suseo Police Station in Seoul is investigating 15 people, including Mr. Jo, on charges of fraud and quasi-deposit-taking. The case was transferred from the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency on the 2nd.

About two years ago, Mr. Jo and others opened a cryptocurrency investment office named 'FVP' in Gangnam, Seoul, and subsequently established branches in various locations nationwide, including Namyangju, Gyeonggi Province, and Cheongju, Chungcheongbuk-do. They purchased coins such as Tron from domestic cryptocurrency exchanges and promoted that if investors entrusted their coins to FVP, they would guarantee the principal and pay monthly dividends of 5-20%, attracting a large number of investors.

To increase investment amounts, the group also ran various promotions, such as paying additional fees if investors' family members entrusted coins or sending overseas trips if a certain amount of cash (5,000 dollars) was entrusted to the company. Using this method, they embezzled investment funds for about a year from June 2021 to June last year.

The number of victims deceived by this group has reached 86 so far, and the amount they have not recovered is estimated to be 3 billion won. Some investors suffered losses close to 600 million won.

The group suddenly blocked the company website and closed accounts in June last year, according to the victims' claims. One victim said in a phone interview with this paper, "The company suddenly claimed that the server was hacked, preventing us from canceling accounts and not returning the money."

Fraud is punishable by up to 10 years in prison or a fine of up to 20 million won. If the amount gained from fraud exceeds 500 million won, the suspect is subject to charges under the Act on the Aggravated Punishment of Specific Economic Crimes (Special Act). If the gain is between 500 million and 5 billion won, the sentence is imprisonment for three years or more; if it exceeds 5 billion won, the punishment is life imprisonment or imprisonment for five years or more.

A police official said, "After completing the investigation of the complainants, we will continue to investigate the accused," adding, "The exact amount of damage will be revealed through further investigation."