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Some participants in an alleged $3.6 billion crypto Ponzi scam are refusing to cooperate with police investigations because they hope to quadruple their deposits.
Victims of a $3.6 billion crypto Ponzi scam in South Korea are apparently impeding the development of a police investigation and a combined lawsuit – because they still believe in the idea and want to see a return on their money.
On June 4, Korean law firm Daegon reportedly filed a joint complaint against V Global, its CEO, and three executives on behalf of 130 investors and the Gyeonggi Nambu Police Agency.
The Gyeonggi Nambu Police Agency is apparently investigating V Global for an alleged crypto Ponzi scheme that cheated around 69,000 individuals out of 4 trillion won ($3.6 billion) while assuring investors that their investments would be tripled.
According to a note on the company’s website, it vehemently denies the “false” charges and has filed a complaint with the Seocho Police Department “for defamation and business obstruction.”
A June 8 article from local media outlet JoongAng Daily states the police have “hit a snag recently” as some of the “victims” of the alleged Ponzi scheme have refused to report the case.
Despite authorities searching 22 of V Global’s locations throughout South Korea last month — and detaining $213 million in assets — staffers from the firm have been contacting victims to inform them that the company is not under investigation, according to the outlet.
An anonymous guy informed JoongAng that he suspected V Global had defrauded his mother. “A few days ago, on June 2, they sent her a text message claiming that no one in the company is under investigation by the police,” the guy explained.
“They keep telling the investors to wait and see, to prevent them from reporting them to the police,” he added.
Along with selling its own native token, V Global reportedly promised that anyone who invested a minimum of 6 million won, worth roughly $5381, would triple their investment by being paid out in dividends after six months.
“They pretended to be a cryptocurrency trading platform, but they appear to have been running an illegal Ponzi scheme on the investors,” a police official told JoongAng.
According to Yonhap news agency, V Global also offered referral bonuses of 1.2 million won, worth around $1000 for bringing new clients to the platform.
According to the paper, V Global exploited new member investments to pay out dividends to current members.
If V Global is found guilty, it might be one of the largest cryptocurrency-related Ponzi schemes on record, akin to the infamous multi-billion dollar Ponzi fraud from OneCoin in 2015.