$250 Million South Korean Cryptocurrency mining fraud uncovered

Did you hear about Mining Max? Thanks to the South Korean Cryptocurrency mining fraud, numerous investors have lost around $250 million. South Korean prosecutors explain how the case unfolded.

22 December, AtoZForex The Incheon District Prosecutors’ Office has reported that they unmasked a multi-million dollar scheme that was carried out by a cryptocurrency mining agency. It appears that the mining firm has been based in South Korea and also had offices in the US. The officials have revealed that the firm has caused huge losses for the investors from all around the world.

$250 Million South Korean Cryptocurrency mining fraud uncovered

Prosecutors stated that as much as 21 suspects have the connection with the US-based Mining Max LLC. The authorities also report that the identified individuals are associated with fraud and other charges. These include violation of the commercial law that has related to door-to-door sales.

According to the office, three of the suspects have already been indicted without detention for embezzlement and other charges. One of the individuals, Park Jung-Woon, has been once a popular Korean singer, according to the office.

Seven other Korean and foreign nationals have been reported to the Interpol for the inclusion on the wanted list. These individuals include the Chairman and Vice Chairman of Mining Max. These people appear to have fled the country. Moreover, the office states that a search is continuing to track down another four investors.

How did Mining Max manage to carry out the fraud scheme?

According to the online reports, the office accuses suspects of stealing 270 billion won (US$250 million) from 18,000 investors in 54 countries. These include Korea, the US, Japan, and China. The fraudulent scheme appears to be taking place between September 2016 and October 2017.

The suspected allegedly lured investors into putting funds into their cryptocurrency mining tools. The fraudsters reportedly stated that the tools produce Ethereum and promised high returns in the cybermoney in case the investors put more money.

Then, the suspected IT department of the fraudulent firm has misled investors by presenting them with manipulated mining results. The fraudsters misrepresented the results to look as if they were mining more Ethereum using the program on their computer.

Yet, the scam scheme did not last long – soon enough, they could not produce necessary returns from cryptocurrency mining.

Prosecutors’ office states that the company has spent 75 billion won to buy the miners. The rest of funds were used by management for personal needs or to reward top performers. The authorities suspect the executives have hidden about 100 billion won of the investment in offshore accounts.

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