11 Detained and 109 Referred Without Detention
Coercion Through Clearance Sales and Resort Investments
The representative of Ado International, a quasi-deposit-taking company, and others who deceived investors by promising not only principal protection but also profits when investing in coins they developed, embezzled about 440 billion KRW and were handed over to the prosecution.
On the 5th, the Dongjak Police Station in Seoul announced that it had sent 120 people, including A, the representative of Ado International, and 16 affiliated companies, to the prosecution on charges of fraud and others for deceiving investors into investing in coins they developed, promising up to 13.8% returns and embezzling hundreds of millions of won. Eleven people, including A, were detained, while the remaining 109 were sent without detention.
They are accused of traveling nationwide from February to July last year, holding false investment briefings, recruiting about 36,000 investors, and embezzling about 446.7 billion KRW. They held the Ado International founding ceremony and parties on Han River cruise ships to reassure existing investors and simultaneously attract new investors.
Top recruiters, including A, were investigated to have persuaded investors by changing their methods, saying things like, "If you buy and sell clearance items cheaply, you can earn more than 200% profit," then "You can make a lot of money in the butcher shop business," and "If you invest in townhouses built in Jeju Island, you will get the pre-sale rights cheaply."
Later, they developed their own payment application (app) and a new type of virtual currency to induce investors to put money into it. Initially, they reassured investors by attaching high returns to the investment funds and allowing withdrawals, making it appear as if it were a legitimate transaction. When it became impossible to maintain, they repeatedly lied, such as claiming "the computer room was hacked," to block withdrawals.
Unlike existing economic crimes such as 'stock leading rooms,' this case caused significant damage mainly to the elderly, including housewives and seniors, because victims were introduced through acquaintances. From August to October last year, 2,116 victims reported to the Dongjak Police Station in Seoul, and additional damages are currently being reported to police stations nationwide.
Kim, a woman in her 50s who suffered about 20 million KRW in damages from this case, said, "Many of the victims are ordinary people who live day by day. Some had sick family members or invested to earn money because they could not afford tuition fees." She added, "At first, withdrawals were actually possible, so I did not feel anything suspicious. The representative explained well like a sound venture businessman and appeared to be a solid company with substance."
During the investigation, the police seized 2.8 billion KRW in cash and preemptively confiscated and seized real estate worth about 14.7 billion KRW under the suspects' names before indictment. The police stated, "We will respond strictly to various financial crimes that infringe on the livelihood of ordinary people," and urged, "If someone recruits investors by guaranteeing principal and high returns, it is highly likely to be a crime such as fraud, so special caution is required."
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