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Founders of Shinil Group Investigated by South Korean Police for Cryptocurrency Scam

Korean laws enforcement brokers in the intervening time are pointing their searchlight into the operations of Shinil Group, a company that claimed to have found better than $100 billion worth of gold in a sunken Russian shipwreck. The company then lured consumers into buying for its Shinil Gold Coin, promising them giant rewards in gold, as reported by sources close to the matter on August 1, 2018.

One different Crypto Scam?

In step with a neighborhood data provide, Korea Joongang Day by day, the chief govt of Shinil Group, Choi Yong-Seok, has been barred from leaving South Korea by Seoul’s Gangseo District Police till the investigation is over.

Shinil Group and its associates had earlier claimed to have discovered the wreck of the Russian battleship, Dmitrii Donskoii, which contained about 150 trillion gained ($131.eight billion) worth of gold and sunken treasures. The company went ahead to launch its private cryptocurrency, which it supplied to better than 100,000 people, promising them giant chunks of gold and completely different treasures.

No Treasures Anyplace

Per the investigation, the whole rip-off funding scheme was orchestrated by Yu Ji-beom, head of one of the associates of Shinil Group in Singapore. Yu, an ex-convict who reportedly fled to Vietnam in a bid to flee being despatched to jail in South Korea for his earlier authorized acts, launched the Donskoi Worldwide Change and uploaded fake images of the shipwreck on social media to deceive gullible consumers.

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Notably, the Korea Institute of Ocean Science and Experience, along with Dong Ah Growth Industrial agency, have every disputed Shinil’s bogus claims.

With lots of of people already invested throughout the Shinil Gold Coin scheme and Yu Ji-beom nonetheless far-off in Vietnam having enjoyable together with his loot, the crypto for gold rip-off has been one different vastly worthwhile scheme.

Although this is not the primary time that South Korean cryptocurrency followers are falling victims to harmful actors who promise too-good-to-be-true returns on investments, it’s worth noting that such scams are steadily on the decline throughout the space.

Korea In a position to Crush Crypto Scams

Though Korean regulators are working throughout the clock attempting to sanitize the native cryptospace, it is pretty sad that some consumers nonetheless uncover it powerful to tell apart between a fraudulent scheme and an actual crypto-based funding.

In July 2018, BTCManager reported quantity of cryptocurrency-centric security firms throughout the space had taken it upon themselves to evaluation credible ICO initiatives for expert consumers.

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