Prosecutors Arrest Additional Scam Coin Processor
The actual operator and CEO of a cryptocurrency issuing company were arrested and sent to trial on charges of embezzling 30 billion KRW from 13,000 investors through a "scam coin" (fraudulent cryptocurrency).
The Seoul Southern District Prosecutors' Office Joint Investigation Team on Virtual Assets (Chief Prosecutor Park Geon-wook) announced on the 19th that four people, including A (45), the actual operator of the Queenbee Coin development company, which gained attention by promoting investment from actor Bae Yong-joon, and CEO B (40), were arrested and indicted on charges of fraud.
Queenbee Coin was once famous as the "Bae Yong-joon Coin," but it was eventually delisted due to stock price manipulation and other issues.
According to the prosecution, from February to March 2020, they issued and listed Queenbee Coin without the intention or ability to conduct a cryptocurrency business, with the purpose of pocketing sales proceeds. They are accused of distributing fake news and manipulating prices to artificially raise the value, embezzling 15.1 billion KRW from 4,000 victims.
Additionally, from January to April 2021, although they disposed of all Queenbee Coins and the foundation issuing coins overseas to a scam coin handler, they promoted the continuation of the business, defrauding 9,000 investors of 15 billion KRW.
Prosecutor General Lee Won-seok is delivering a greeting at the 'Joint Investigation Team Launch Ceremony for Virtual Asset Crimes' held on the 26th at the Southern District Prosecutors' Office in Yangcheon-gu, Seoul. Photo by Kang Jin-hyung aymsdream@
They used new methods such as holding "trading volume events" to sell large amounts of coins. During the event, the trading volume of Queenbee Coin reached 120 billion coins.
Furthermore, it was confirmed that from October 2020 to January 2021, they embezzled 5.68 billion KRW of company funds obtained by selling Queenbee Coins and used it to purchase stocks and assets under borrowed names. The prosecution froze these assets to prevent their arbitrary removal before the verdict through confiscation and seizure preservation.
A prosecution official stated, "In line with the enforcement of the Act on the Protection of Users of Virtual Assets, we will thoroughly investigate and strictly punish criminal groups that disrupt the order of the virtual asset market and cause harm to ordinary citizens."
On the same day, the prosecution additionally arrested C (46), the finance officer of the scam coin handler who received all Queenbee Coins and the coin issuing foundation from A and B and their associates.
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