Investigations into a virtual asset firm suspected of crypto investment fraud are widening, with complaints piling up in Goyang, South Gyeongsang Province and other parts of the country. The number of investors reporting losses is rising, but some cases have dragged on without resolution as police decisions not to refer suspects to prosecutors have been followed by repeated orders for supplementary investigation. (See this newspaper, July 27, Page 22)
According to police on the 6th, the Yangsan Police Station is conducting a supplementary investigation into four suspects on fraud charges in a crypto investment case involving the firm, referred to here as Company A. Police had earlier decided not to refer the suspects to prosecutors, but the case file was sent to what was then the Ulsan District Prosecutors' Office after a victim filed an objection. The Ulsan District Prosecutors' Office ordered a supplementary investigation on April 17 and, after receiving the additional findings, issued a second such order on Aug. 13. An official at the Yangsan station said additional investigation into the alleged offenses is under way.
Cases involving Company A are also proceeding elsewhere. The Goyang Police Station declined to refer a separate case to prosecutors in November last year, but the file was transferred last month to what was then the Goyang branch of the Uijeongbu District Prosecutors' Office after a victim objected. The Goyang branch of the Uijeongbu District Public Prosecution Office is now reviewing the case. Earlier, in February this year, the Gimpo Police Station referred three people linked to Company A to the Bucheon branch of the Incheon District Prosecutors' Office on fraud charges without detention.
The investment solicitation method described in the complaints resembles previously confirmed cases. Investors were told that buying 5,000 coins would yield a total of 10,000 coins through 180 days of automatic mining, a pitch that touted a "200% return over six months" and the prospect of an exchange listing. A victim in the Yangsan case said they invested after being told that buying 5,000 coins for about 13 million won ($9,100) would generate 55 coins a day. The claimed losses amount to about 98 million won. The complaints also state that so-called "captains" held information sessions in Busan, Geoje and other cities, emphasizing high returns and safety.
Victims are also joining forces. The number of participants in an open chat room for people reporting losses tied to Company A has grown from about 200 in July to more than 250 recently. Hong Pu-reun, managing attorney at Decent Law Firm, said that in multilevel structures, the person who made the introduction may themselves have invested through someone else's referral, so filing a complaint against the referrer alone can end in a finding of no charges. The lawyer said investigators need to follow the solicitation structure and the flow of funds to determine whether higher-level figures were involved.
