[Exclusive] Insider Brainwashed by Watching 'Tazza', and Sales Script [Coin Scam Republic]

Special Feature <Coin Scam Republic - They Were Meticulous>

②-⑵Confession of an Insider in a Coin Scam Organization
Training Salesmen by Showing the Movie 'Tazza'
"People Who Will Get Scammed Anyway" Repeatedly Said
'Weekly Salary of 10 Million Won' Big Money... Difficult to Drop Out Midway

"In the movie 'Tazza,' there's a scene where a 'university professor' who lost his child's hospital bills returns to gambling once he gets money. On the first day of sales training, they showed us that scene. They said, 'The victims would lose money somewhere else anyway, even if not with us, so it's better for them if we take less.'

Kim Jaeyoon (male, pseudonym), who was involved with L Investment Group for over two years and was indicted by the prosecution for virtual asset (coin) investment fraud. He was one of about 20 salespeople working at one of the sales corporations under L Group. The CEO A, who was the mastermind and led the entire crime, along with key accomplices, have been indicted by the prosecution and are undergoing first trial at Suwon District Court. Due to concerns about flight risk and evidence destruction, they are detained in a detention center. Jaeyoon received a reduced sentence and was fined in exchange for whistleblowing to help victims and cooperating with investigative agencies. Currently, the number of reported victims is 377, and the sales scale reaches 10.4 billion KRW. Although the prosecution's indictment is confirmed only for the RNDX coin case, the total fraud damage is expected to double. This is because L Group sold 22 types of virtual assets besides RNDX.

Majority Are 20s Just Graduated from High School

In an interview with Asia Economy on the evening of the 9th in Gangseo-gu, Seoul, Jaeyoon said, "I joined the company because I urgently needed a large sum of money," and that he saw the job posting through ordinary job sites like JobKorea and Albamon. Under the guise of 'Outbound, Inbound, Telemarketer (TM) recruitment,' they were actually recruiting sales organization members to conduct illegal sales. The 'referral by acquaintances' method was also preferred internally for recruiting personnel. It not only reduced the cost and time of training but also leveraged the 'acquaintance relationship.'

Salespeople, commonly called 'salesmen,' are mostly in their early 20s, just graduated from high school. They are also preferred by the company because they are young and fearless. They do not even inquire about each other's origins, backgrounds, or motivations. The upper group is the same. After joining, Jaeyoon never visited L Group's headquarters building again after the first week of sales training for two years. The only link to headquarters is the representative of the sales corporation. Salespeople use pseudonyms and burner phones and conduct thorough non-face-to-face sales, so they have confidence that 'I won't get caught.'

"At first, the company tries to eliminate morality by training us harshly. But after two or three months, even without the company's orders, we just know how to sell. The weekly pay is 10 million KRW. It's unbelievable that 20-year-olds, high school graduates, can earn that much. Everyone drives Mercedes. People think fraud is only because of lack of money, but not all are survival-type."

There were more than 20 salespeople in the sales organization Jaeyoon belonged to. There are seven such sales organizations confirmed only in the RNDX case. The upper organization, L Group, had operated a stock leading room business since its days as a similar investment advisory firm. But around 2022, sales scripts and instructions to 'sell coins from now on' were issued to salespeople. Salespeople approached existing customers promising to compensate losses from paid stock leading rooms. This exploited the human inherent loss aversion bias.

"The headquarters told us to sell coins from now on. Most of the people who ran the paid leading rooms inherited the customer database, and a skeleton draft of the script was given."

L Group is estimated to have first conspired the RNDX coin fraud at the end of 2021. As stock market conditions worsened from late 2020 and social awareness of leading rooms increased, they turned to coin fraud. The main culprit CEO A, as stated in the prosecution's indictment, planned and oversaw coin issuance, sales, and money laundering from November 2021. CEO A and key accomplices deceived victims by exploiting the idea that coins could be issued linked to the social networking service (SNS) app 'Dunggeul.' They pretended to develop coins with payment system functions usable within the Dunggeul app. They introduced various coins under the guise of 'private sales' (discount sales conducted privately). They deceived victims by promising to sell coins cheaply before listing on overseas exchanges, sold large quantities, and disappeared before the lockup period ended. The coin price plummeted as soon as victim holdings were released. According to CoinMarketCap, as of the 11th, the RNDX price was $0.000038 (0.05 KRW), about 1/550th of the pre-lockup release price.

Up to 30% Incentives... Difficult to Leave Due to Unfair Contracts

So, how much sales incentives do salespeople receive? It varies widely from less than 10% to as much as 30%. The EAC coin had the highest incentive at 30%. For example, SRT and RNDX are structured to be created by one person. Incentives vary depending on the personnel and costs to create the target coin and the difficulty of recruiting investors. The company paid incentives to salesmen in cash.

"Once a week, the sales corporation representative literally came with a bag full of cash and distributed it one by one. The person who earned the most incentive that week would treat everyone at a luxury bar in Cheongdam-dong; that was routine. Even if we heard that a victim committed suicide, no one felt guilty. I only thought about making money in that environment."

It is also not easy to leave the organization midway. This is due to a kind of 'unfair contract' between the sales corporation and salespeople. Jaeyoon said, "We are practically sole proprietors," and added, "I realized this when I left the organization this time. Many other salespeople probably don't know yet." He claimed, "We don't sign normal labor contracts but work as 'freelancers,' and the contract mentions 'betrayal, confidentiality clauses,' with penalties of 1 billion KRW for violations."

He believes coin fraud will not end soon. This is due to the complexity of virtual asset technology, the difficulty of investigation caused by cunning contract forms, and the anonymity and openness characteristics of virtual assets. For example, many coins are made using the freely available ERC-20 (program) standard code. Since they do not have their own mainnet (blockchain network) and ride on other mainnets, they are closer to tokens than authentic coins.

"Anyone can create fake coins, fake exchanges, fake wallets. One sales team leader reportedly went independent even though the CEO is under arrest investigation. Catching the upper management is important, but catching all salesmen is crucial. Unless the fraud penalty becomes very severe, I think this kind of coin fraud will never end."

Wearing a deeply pulled hat, Jaeyoon repeatedly said during the two-hour interview, "You can blame me." As a whistleblower and a long-term employee, he seemed conscious of public perception and appealed, "I secretly helped victims while in the organization and have kept communicating with them." He expressed his intention to assist victims' legal actions and actively cooperate with authorities' investigations going forward.

Meanwhile, Asia Economy made multiple attempts to contact Law Firm Rojipsa, representing L Group's CEO A, to ask for the defendant's position but received no response.

Looking into the Actual Sales Script

Below is the actual RNDX coin sales script obtained by Asia Economy. The script was designed so that sales could be conducted without understanding blockchain technology. It specifies everything from tone modulation to when to listen to answers and when to send statistical data. The method of feigning friendliness by saying "Buy me a coffee" was sometimes varied to "Buy me a suit, buy me a meal," etc.

Source=RNDX Scam Victim

Salesman: Hello, member. I'm contacting you because of an urgent situation. You must have some slush funds you haven't told me about. This is information I personally found out, unrelated to the company, so please focus on this top-secret info. Have you heard of 'Instagram'? (Waits for answer)

Investor: Yes.

Salesman: Yes. It's a very famous platform. It's number one in the social media platform industry. Here's a super top-secret info: Recently, Instagram tried to integrate blockchain technology to link various coin mining systems currently traded inside the app, but due to international issues and technical flaws, it was rejected at the DAO (Decentralized Autonomous Organization) major decision meeting. However, a social media platform that succeeded in integrating a coin mining system, surpassing Instagram, was recently decided. It's the Dunggeul app! Although not widespread in Korea, overseas it ranks within the top 5 fandom social media platforms right after Instagram, and in Southeast Asia and Europe, 1 in 10 passersby use Dunggeul to send messages, 'like,' and engage in fandom activities.

Salesman: (Slows down here) The way to get coins is simple: by logging into the Dunggeul app and just 'liking' posts, you probabilistically earn coins. The Dunggeul-exclusive coin called RNDX is mined first, and later you can convert it to Bitcoin and use it. This is information delivered about two months earlier than news or expected disclosures. What are the most famous social media platforms now? YouTube, Instagram, Facebook, right? But they only allow communication without automatic coin mining to earn money. What if a similar platform automatically mines coins every time you 'like' and earns you money? Now, would you continue communicating with acquaintances on the existing Instagram, or would you use Dunggeul, which allows communication and coin mining to earn money? (Waits for answer)

Investor: Yes, I would.

Salesman: Yes. Within six months, existing platforms like Instagram and Facebook will likely collapse, and users will almost all move to Dunggeul coin. Because it allows communication and earns money. The representative coin used in that platform market is RNDX, which is scheduled to be listed in June. It is expected this coin will instantly make you a billionaire. Have you heard of Cyworld? (Sends a screenshot of Dotori coin evidence)

Salesman: Check the message I just sent. The Cyworld we know recently revived, and its Dotori coin, a small coin, was listed on Digifinex, a foreign small-to-medium exchange. The Cyworld Dotori coin soared 7 times in just one day. If a small Korean platform's coin soared 7 times in one day, how much do you think the price will rise if the world's population almost all uses the second Instagram and it gets listed on six major overseas exchanges? (Waits for answer)

Investor: Yes, but...

Salesman: Major foreign companies and big financial players are already placing pre-orders whenever trading volume appears. The listing price is expected to be $0.011, about 13 KRW in Korea by June, but only some connected people, including you, will get a pre-purchase at 8 KRW. So, you will start with more than double your principal right after listing, and by the end of June, you can expect at least 30 times your principal. If there is only one chance in your life to change your fate, I swear on my children Yaeun, Yesol, and Yaehyuk that now is the first and last chance. If you buy 3,000 coins, you will definitely get 900 million KRW in expected profit, so please at least buy me a coffee. How much would you like to buy?"

We plan to conduct in-depth investigative reporting on 'virtual asset investment fraud.' We will strive to establish comprehensive countermeasures to eradicate coin crimes. Please send tips to (lsa@asiae.co.kr). We will investigate and report thoroughly.

▲Team Leader Lee Seonae, Deputy Manager △Reporters Kim Minyoung, Cha Minyoung, Kim Daehyun, Hwang Yoonju