The CEO of a South Korean tech firm, identified as Byun, has been arrested for allegedly orchestrating a fraudulent scheme involving Ethereum-themed cryptocurrency that targeted around 500 victims, most of whom were elderly citizens. Byun, who is the CEO of Wacon, a company operating a wallet service called MainEthernet, is accused of running a Ponzi-style pyramid scheme. The victims were promised interest on their crypto deposits in the firm’s wallets. Byun allegedly assured investors that he could resolve their issues and refund their funds within four months, despite prosecution officials claiming that the scheme was worth hundreds of billions of won.
The Fifth Criminal Division of the Seoul Central District Prosecutors’ Office has announced that Byun and an alleged accomplice named Yeom will face trial on charges of fraud. Authorities began investigating the case after reports emerged that investors were unable to withdraw their funds from MainEthernet in the summer of 2023. Byun had reportedly met with investors in November of the same year, assuring them of refunds and resolution, but officials suspect that he was involved in a multi-level marketing fraud scheme. Despite allegations of running a Ponzi scheme, Byun denied knowledge of such operations and claimed to be involved in operating a crypto exchange and an NFT-based gaming business.
Reports suggest that around 12,000 individuals may have invested in Wacon, with the majority of investors being 60 years of age or older. Byun had purportedly made promises to investors of high returns averaging between 45% to 50% on their stakes, further fueling suspicions of fraudulent activities. Authorities are currently investigating the case to determine the involvement of any additional victims or accomplices. The firm’s headquarters, located in Seoul’s Gangnam District, had a sign removed from the front of the building in November 2023, indicating potential attempts to evade scrutiny.
In addition to Byun’s arrest, an accomplice named Yeom has also been taken into custody in connection with the case. Prosecutors are focusing on uncovering the extent of the fraud and bringing justice to the victims who fell prey to the scheme. With a commitment to combating financial crimes in the cryptocurrency industry, authorities are dedicated to holding perpetrators accountable and deterring fraudulent activities that exploit vulnerable individuals, such as elderly citizens. The case serves as a stark reminder of the risks associated with investing in cryptocurrency projects and highlights the importance of conducting thorough due diligence before participating in any financial ventures.
