SUWON, South Korea, Could 4 (Yonhap) — Police on Tuesday raided dozens of locations associated to a digital forex trade and froze the trade’s money deposits as a part of an investigation into its alleged irregularities.
The Gyeonggi Nambu Police Company mentioned it performed the raids into 22 locations, together with the trade’s headquarters in southern Seoul, and froze 240 billion gained (US$214 million) left within the trade’s account.
The raids had been to acquire proof to corroborate the allegations that the CEO, surnamed Lee, ran a fraud scheme and violated the act on the regulation of fundraising enterprise with out permission.
Lee is suspected of amassing roughly 1.7 trillion gained from 40,000 folks since August for membership charges. Every was required to open not less than one account for six million gained.
In keeping with the investigators, Lee and his accomplices lured traders by promising them hefty returns thrice as large as the unique funding and introduction charges if and once they tricked different folks into becoming a member of the pyramid-like scheme.
A number of the traders really acquired returns, which had been the truth is paid with different traders’ cash, the police mentioned.
A court docket granted the police permission to freeze the whole sum of 240 billion gained left within the trade’s account as of April 15 in order that the corporate could be banned from utilizing what regarded like unlawful proceeds till the investigation ends.
The police have been investigating the trade since suspicions had been raised over its operations in February.
They can’t share particulars about an ongoing investigation, a police official with information of the matter mentioned.
The South Korean authorities has not too long ago intensified monitoring of enterprise actions of cryptocurrency exchanges amid frenzied transactions and surging costs of Bitcoin and different digital currencies.