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HomeCryptoSouth Korean Police Probe Crypto Mining Outfit on ‘Ponzi Scam’ Suspicion

South Korean Police Probe Crypto Mining Outfit on ‘Ponzi Scam’ Suspicion

Source: Busara/Adobe

South Korean cops are investigating a crypto mining agency that allegedly did not pay again its buyers – after promising them month-to-month returns of as much as 12%.

Per the information company Yonhap and the newspaper Chosun Ilbo, police have stepped in after legal professionals representing a gaggle of buyers filed a authorized grievance. The allegations focus on a agency named “Btbank.” The English transliteration of the corporate’s Korean title (비트뱅크) is “Bitbank” (to not be confused with the bona fide Japanese crypto alternate of this title). It additionally seems to go by the title OK-Bit.

The agency’s web site options promotional details about KOK Play. This “multi-tiered membership” undertaking makes use of an ethereum (ETH)-based altcoin named KOK Play and is at present underneath investigation by the South Korean police. has beforehand reported on KOK Play and the authorized case constructing across the agency. Following the publication of our most up-to-date report on KOK Play, a reader contacted to assert that they “have family members who were deeply involved” in KOK Play. The similar particular person said that they’d “seen the company destroy relationships” with “deceptive tactics.”

The police said that Btbank has been accused of failing to return investment stakes to its buyers. The firm allegedly instructed buyers that they may acquire income by mining tokens utilizing rigs primarily based in South Korea and overseas.

Like different suspected mining scams, the agency allegedly promised would-be buyers “guaranteed 3-7% monthly mining profits.” “High-tier” buyers have been instructed they may count on 12% positive aspects on their stakes.

Investors have been instructed to make deposits in USD, and have been requested to speculate as a lot as $200,000 within the undertaking. They have been instructed that the agency operated six mining facilities in South Korea, along with a mining farm in Kazakhstan.

Another Crypto Mining Ponzi Scheme?

Police declare that BtBank’s enterprise mannequin made use of a “multi-level structure” that gives “bonuses when existing investors sign up new investors.” The firm allegedly instructed would-be buyers that they may put a minimal of $250 into the undertaking. But it reportedly stated that stakes have been totally refundable, and may very well be withdrawn from the BtBank platform at any time.

Each time they recruited a brand new investor, the corporate allegedly promised, an current member’s “level” would rise. Prolific recruiters have been instructed they may earn greater than 50% monthly in bonus funds.

But legal professionals have alleged that “since the middle of the year,” many buyers have been unable to make withdrawals. “Investors tried to close their accounts and recover their investments,” reported Chosun. But the corporate reportedly “delayed payment” for “several months.”

Lawyers claimed that “more than 200 victims” have been left with no entry to their funds.

One of the authorized corporations concerned within the class motion lawsuit predicted that “more than 1,000 victims” might have been omitted of pocket.

BtBank stated it has responded by forming “an investor association.” It additionally stated it will “focus on recovering investment by reducing the size of its headquarters” and decreasing its “fixed costs.”



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