South Korean police say V Global crypto exchange a possible pyramid scam

South Korean authorities may have found reasons to believe that crypto exchange V Global could be at the center of a fraud network that has already amassed $2 billion.

This comes after investigations into the platform intensified, leading to police officers raiding the different offices of the crypto exchange company.

Local media outlets in the country said the police now claim some 52,000 customers may have been affected by the illegal dealings of the platform which has been the subject of investigation for several months after a group of investors claimed they had not been able to withdraw funds from V Global.

Back in May, according to reports, assets worth more or less $214 million were frozen.

A potential pyramid scam

The police believe that the crypto exchange platform, whose website is still operational and actually looks like a normal South Korean crypto exchange, was in fact a front for a pyramid scam.

V Global’s website has not been updated since May when millions of assets were frozen and the company hasn’t responded to requests for comments regarding the issue it is currently facing.

In line with this, authorities have already secured an arrest warrant for four individuals, three of which are for senior-level executives. The court that granted the arrest orders agreed with the police that there was a danger that the individuals may opt to leave the country, taking away with them investor assets.

Going after the guilty

Authorities have said they have already cautioned additional 70 individuals in light of their ongoing investigations into V Global.

Meanwhile, the four subjects of the arrest warrants were already charged with various fraud and illegal marketing-related offenses.

It is said that V Global is the brainchild of a 31-year old person who is only known by the surname Lee.

 

Image courtesy of Cointelegraph News/YouTube

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