CEO Of A Company In South Korea Arrested For Crypto Fraud Case Worth IDR 5.7 Trillion

JAKARTA - CEO of South Korean technology company Wacon, Byun Young-oh, has been arrested for alleged massive crypto fraud involving funds of US$366 million (Rp5.7 trillion). This case has rocked the financial community in South Korea, mainly because of its devastating impact on elderly investors who are less familiar with investing in cryptocurrencies.

According to a report from local Korean media, iNews24, Byun Young-oh together with a colleague named Yeom allegedly carried out a Ponzi scheme disguised as a legal investment opportunity.

Through a crypto wallet service called Wacon's MainEthernet, they promise huge profits from Ethereum investments, with the lure of returns up to 45-50%. This promise has succeeded in attracting many investors, including those looking for safe investment options.

Reporting from Coinspeaker, the problem began to emerge in mid-2023 when investors reported difficulties in withdrawing their funds. Despite growing concerns, Byun assured investors that the matter would be resolved within four months. However, in November 2023, the MainEthernet office in Gangnam District, Seoul, suddenly closed operations and removed all signs of its existence, signaling serious problems.

This scam has a major impact on investors, especially the elderly who do not fully understand the risks of investing in cryptocurrencies. Reports suggest that up to 12,000 people may have been victims of this scam, highlighting the magnitude of this scheme.

The Seoul Central District Prosecutor's Office has indicted Byun and Yeom on charges of fraud, and the case is expected to go to court soon. The investigation is ongoing to identify victims or other perpetrators, who could expand the scope of the case.