The world of cryptocurrency is a strange place. Cryptocurrencies are based on the blockchain technology – which is basically a decentralized ledger. It can store any form of transactions transparently and efficiently. It has a number of different applications in a wide variety of fields.
However, the blockchain technology has been under fire recently due to the number of illicit activities taking place with cryptocurrencies. Cryptocurrencies have been used to evade taxes, to launder money and also for financing rogue elements and their actions. Another way how people are duped in the crypto world is via fraudulent schemes and initial coin offerings(ICOs).
What happened in South Korea?
Reports have come that two men have been arrested in South Korea for running a bitcoin pyramid scheme that duped unsuspecting victims of around 20 billion Korean won or $ 20 million from investors.
According to the reports, the scheme was initiated in 2015, and a multi-level company was built by promising investors high returns by investing in bitcoin.
What did the judge say?
A judge attached to the Incheon District Court of Seoul had issued fines of $ 15 million and $ 8 million respectively to the two men. The judge had said,
“The multi-level transaction is a risk to the socioeconomic order with mass production of many victims.”
The local news source Yonhap reported that the fines were calculated on the basis of the vast sums of money that they had defrauded.
What happened in the neighbouring country?
China, the neighbouring country, has recently increased its efforts to clamp down on multi-level marketing schemes that are disguised as crypto investment ventures. The Chinese police have recently arrested the people associated with a nation-wide crypto pyramid scheme that had amassed $ 13 million from over 13000 people.