In South Korea, founders of a cryptocurrency pyramid scheme arrested over $82.5 million

The police in the South Korean city of Chhanwon arrested 22 people on charges of cryptocurrency investment fraud. Local media report.

According to case materials, the chief executive and his associates established an asset-management firm. They guaranteed clients a 300% return, promising listings on major exchanges and an internal listing of the coins. In reality, the company operated a Ponzi scheme.

In total, the pyramid scheme affected 6,610 people, with losses amounting to 110 billion South Korean won (about $82.5 million at the time of writing).

During the investigation, the court barred the organisers of the fraud scheme from disposing of assets, including deposits and vehicles.

Earlier in June, the South Korean parliament passed a law on the protection of digital-asset users. It is also preparing a regulatory act on tracking and freezing North Korea-linked cryptocurrencies.