Korean crypto exchange stole $1.5 billion from clients
One of the cryptoexchanges in Korea has been blamed for defrauding 40,000 people, including local housewives and even aged people. The number of losses of citizens exceeded 1.7 trillion won, which is equivalent to 1.5 billion.
At the center of the scandal was the V Global cryptoexchange. Police in Gyeonggi Province told about ransacking the trading platform’s base, raiding 22 other “offices” across the country, and froze 240B won (about $214M). Korean law enforcement agencies published that the CEO of the cryptoexchange, also known as LEE, was collecting funds without any approval from South Korean regulators. As part of the investigation, all assets of the exchange have been blocked.
The amount of $1.5 billion was received by representatives of the trading platform from the summer of 2020 to the winter of 2021. Most of those who suffered as a result of the scam turned out to be people with no background in trading cryptocurrency assets. The main promise from the cybercriminals was to triple the investment cost, and as a "bonus" they promised 1.2 million won (about $1,060) for each participant who joined.
Since the police did not even have doubts that they were dealing with another fraudulent pyramid, they decided to confiscate the previously frozen $214M. But will people be able to receive compensation against the background of losses of $1.5 billion?