South Korean CEO Arrested for ‘$366 Million Crypto-themed Fraud’
The South Korean CEO of a tech firm has been arrested for allegedly masterminding an Ethereum (ETH) -themed crypto-powered fraud scheme that sucked in around 500 victims.
Per iNews24, a man surnamed Byun, named as the CEO of a company named Wacon, has been remanded in custody and will face trial.
Byun was arrested alongside another suspected “accomplice” surnamed Yeom. Previous South Korean media reports from outlets such as Cheonji Ilbo have named the CEO as Byun Young-oh.
The Fifth Criminal Division of the Seoul Central District Prosecutors’ Office said it would try Byun and Yeom “on charges of fraud.”
Prosecutors said that most of the “victims” were elderly citizens. And they said Byun orchestrated a Ponzi-style pyramid.
Wacon operated a wallet service named MainEthernet, where it claimed investors’ funds were held.
However, in the summer of 2023, reports began circulating online claiming investors were unable to withdraw their funds from the platform.
Reporters noted in November 2023 that a sign had been removed from the front of the headquarters MainEthernet. The offices are located in the affluent Gangnam District of Seoul.
Byun met with investors in November last year, where he claimed that he would refund investors. He also told them that he could “solve everything in just four months.”
However, prosecution officials believe Byun led “a multi-level marketing fraud” scheme “worth hundreds of billions of won.”
Officials say Byun and Yeom “attracted investors” by “promising to pay interest” if they “deposited” crypto in the firm’s wallets.
Prosecution spokespeople said they were “currently investigating” to establish whether any “additional victims or accomplices” may be involved.
At one point, Cheonji Shinmun also reported,
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