"'Two Siblings' Dad' Salesman... 50s Head of Household Victimized by Son-like 98-born Man [Coin Scam Republic]"

Special Project <Coin Fraud Republic - They Were Meticulous>

③-⑵ Went to the Rehabilitation Court... Family Relations Also Uncertain (Exclusive Interviews with Victims)
Returned to Field Work After 15 Years
The Fall of a Father with a Credit Score of 990
Even Winning Lawsuits Feels Hopeless... Regrets Remain

"When I was on the phone, he lied saying he was a respectable 'dad,' mentioning the names of his own children, Hyebin and Jeongmin, to explain things. Later, when I caught him, I found out he was born in 1998."

On the evening of the 2nd, at a location in Gangseo-gu, Seoul, Mr. Jeong Yunho (alias), in his 50s, said this while showing a copy of the ID card of his sales representative, Ms. Im Sowon (alias). He is a person with over 30 years of experience in the manufacturing industry. After falling victim to a virtual asset (coin) investment scam, he left his managerial position, where he had worked for about 15 years, and recently voluntarily moved to a field job. He was short of even a single penny due to monthly interest exceeding 1 million won. Although he knew it was too much for his back, which had undergone two surgeries, he had no choice but to think of his wife and high school son living in his hometown in Incheon. He took out the lawsuit documents and evidence he had collected so far from his black backpack and showed them. It was about the thickness of a thin book in A4 paper size.

Victims related to the RNDX coin scam incident responding to an interview with Asia Economy on the evening of the 2nd in Gangseo-gu, Seoul. Photo by Cha Min-young

Frequent Conflicts Due to Financial Hardship... Considering Divorce When Son Becomes Adult

Mr. Jeong said, "There is no good communication with my wife, and we fight a lot now over living expenses," adding, "I plan to divorce once my son, who is in the second year of high school, becomes an adult, but right now my son doesn't talk to me at all." He also sighed, "I am paying 1.3 million won in interest alone, but from next year, I will have to pay the principal as well." His total investment amount, including loans, is about 230 million won.

The coin scam company Mr. Jeong got involved with was a quasi-investment advisory firm, the L Investment Group, which was famous in the Yeouido securities district. Led by CEO A, L Group focused on stock leading but shifted its business direction to coin scams at the end of 2021, riding the coin investment boom. The coins sold through about seven sales corporations by L Group included more than 20 types such as SRT, RNDX, HTT, NFUP, and VKT. Salespeople used the customer database (DB) secured from stock leading chat rooms as a weapon, using aliases and burner phones to target victims.

This is a reprocessed version of the evidence materials from the victim side related to the RNDX coin fraud case specified in the indictment. From the left: date and time of the crime, location, victim, depositor account holder, amount of damage, deposit bank, deposit account number, recipient account holder, recipient bank, recipient account number, sales corporation. Photo by the victim

Although victims and sales corporations varied, the scam methods were similar, thanks to the sales script drafts sent from headquarters. So-called 'salesmen' recommended coin purchases to compensate for losses from stock leading, and after losses in coins, higher-ranking salespeople such as 'team leaders' and 'managers' were assigned to sell other coins. According to the prosecution's indictment, there were 377 reported victims related to the RNDX case alone, with damages amounting to 10.4 billion won. This new type of scam combined 'private sales' (discount sales conducted privately) and 'lock-up' (restricted sale), and salesmen who used to make up to 10 calls a day to victims would cancel their burner phones and disappear by the time investors realized it was a scam.

The Fall of an Ordinary Family Man... Even Went to the Rehabilitation Court

Compared to Mr. Yoon Jaehyung (alias), Mr. Jeong's situation is somewhat better. In his 60s, Mr. Yoon was called 'President Yoon' among victims. With neatly combed hair, a shell-colored dress shirt, and a well-ironed jacket, he did not look like a scam victim at all. It was hard to imagine he had completed personal rehabilitation.

"There was Cheongnyang Mountain right in front of the house I lived in Yeonsu-gu, Incheon. As a Christian, I used to go there for mountain prayers and early morning prayers. When I thought about the debt I could never repay, I wondered if that was where I should die..."

Mr. Yoon, an ordinary office worker, was also caught up in the L Group's stock leading chat room with a monthly fee of 10 million won just before his retirement in 2022. When investment losses kept piling up, the company offered coin leading as compensation. Having already spent tens of millions on stocks, the promise to cover losses paralyzed his reason. The total was 800 million won. He used not only his retirement pay of 180 million won but also credit and apartment mortgage loans, and the money disappeared like smoke within months. Thanks to a high credit score of 990 points, he easily obtained non-face-to-face loans through platforms like 'Finda.' When normal loans were no longer possible, the company even introduced private loans with an annual interest rate of 15%.

He said, "I am still alive because of the personal rehabilitation system. I wish my credit score had been lower... Looking back, I know it was ridiculous, but by then I was too deep in it to get out."

Unable to cope with the increasing interest and calls from 11 institutions, he confessed to his wife first, which immediately led to talks of divorce. Mr. Yoon said, "At first, I applied for a workout, but because interest arrears continued, I went back to the Seoul Rehabilitation Court and applied for personal rehabilitation again," adding, "My lawyer said that stock and coin scams have increased so much that 30,000 people apply for rehabilitation at the Seoul Rehabilitation Court every year."

According to the '2023 Personal Bankruptcy Case Statistical Survey Report' by the Seoul Rehabilitation Court, the proportion of bankruptcy causes due to 'investment (stocks, etc.) failure or scam damage' surged from 2.07% in 2021 to 11.29% in 2022 and remained at a similar level of 10.95% in 2023. As of 2023, it ranked fifth among major causes of bankruptcy such as business failure.

Ms. Kim Juhyun (alias), a woman in her 50s who is actively working as a representative victim, is in a similar situation. Despite being a professional insurance planner requiring financial knowledge, she fell for a similar scam method. She said she did not think the VIP stock leading service she briefly joined and canceled in 2020 was an organized scam.

"I told my husband I only lost 50 million won, but the actual amount is much bigger. Now, they only know I was scammed, but neither my husband nor my children understand and they ignore me. They ask why I fell for it." Ms. Kim's face darkened briefly during the interview, despite her cheerful smile throughout.

Entering the Workforce in Twilight Years

Besides the RNDX case, many who were scammed in coin fraud have entered the workforce in their twilight years. Mr. Park Ingu, a former high school teacher in his 60s, is currently working as a building manager in the Jongno-gu area of Seoul. He handles parking and building management. His resilient wife has also started earning money.

On the 9th, Park In-gu, a victim of a cryptocurrency scam, whom we met near Anyang City, Gyeonggi Province, is showing a complaint form. Photo by Cha Min-young

Mr. Park requested to be named publicly, hoping these scam groups would be severely punished. Around June 2021, just before retirement, he taught geography at a high school in Anyang-si, Gyeonggi-do. He worked as a contract teacher for about 1 year and 6 months at a friend's request before retirement. His external reputation was not bad, which made this possible. Having lived half his life as an educator, he now works night shifts as a building manager. Though not a hard job, it is a necessary means of livelihood. His wife said, "Let's just write off the lost money," but Mr. Park could not accept that. He actively engaged in civil lawsuits with help from a law office and a 'victim relief helper' caf?.

Like other new coin scam methods, his case also started with a stock leading chat room. In the second half of 2022, company D, which provided stock leading, introduced Cryptokki, Itemverse, and Hulbee as compensation. These were coins already listed or about to be listed, all under lock-up. After initial success, he invested additional funds, and within 6 to 7 months, his total investment grew to 80 million won. This was equivalent to two years' salary as a contract teacher at level 14 (40 million won per year). Waiting for the lock-up release date, he was shocked on the Cryptokki lock-up release day in September 2022. With help from his second son, he placed a sell order, but it was not executed. Meanwhile, the coin price plummeted 99%. The 40 million won worth of coins then was now worth less than 1 million won.

Complaint documents related to Mr. Park In-gu's coin fraud case. Photo by the victim

"I first filed a civil lawsuit against CEO Kim Kyunghee (alias) of company D to recover at least the 5.28 million won stock leading fee, losing in the first trial but winning in the second. However, since she said she had no money, I filed a criminal complaint. I was trying to get at least a settlement. But now I regret everything. The defendant's lawyer, who initially said they would return the principal excluding interest, now says it's difficult to settle because there are too many such companies."

The criminal complaint against the coin scam salesperson Mr. Jeong Taehoon (alias) is in a similar situation. The case was transferred from Yeongdeungpo Police Station last April and merged with 83 similar cases on the 26th of last month, then sent to the Seoul Southern District Prosecutors' Office. There are 66 suspects. CEO Kim, who was thought to be the real power, is presumed to have been a 'front man.' Mr. Park's time is expected to drag on endlessly.

"I should have settled for 20 million won with Jeong Taehoon when he offered at the end of 2022 after I reported to the police. Except for the relief of winning the lawsuit, I actually gained nothing. I hope this issue becomes a big social concern so that ordinary people don't suffer such unfairness."

Meanwhile, Asia Economy made several attempts to contact law firm Rojipsa, representing CEO A of L Group, to ask for the defendant's position but received no response.

We plan to conduct in-depth investigative reporting on 'virtual asset investment scams.' 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, Manager △ Kim Minyoung, Cha Minyoung, Kim Daehyun, Hwang Yoonju Reporters