SEOUL, Friday, August 16, 2024- Byun Young-oh, CEO of South Korean tech firm Wacon, was arrested on charges of orchestrating a $366 million cryptocurrency fraud scheme.
The Seoul Central District Prosecutors’ Office announced the arrest on August 15, 2024, as part of an investigation that revealed significant financial losses affecting over 500 investors, including many elderly individuals.
Byun, along with his accomplice Yeom, allegedly ran a Ponzi scheme through Wacon’s wallet service, MainEthernet, which promised investors returns of 45% to 50% on their Ethereum deposits. The fraudulent operation targeted those unfamiliar with cryptocurrency, drawing in around 12,000 investors with the lure of high returns.
The scheme began unraveling in mid-2023 when investors reported difficulties withdrawing their funds. By November 2023, the MainEthernet office in Seoul’s Gangnam District had shut down, signaling the collapse of the operation.
The impact on victims has been severe, particularly among the elderly, many of whom were seeking secure investment opportunities.
The case is now moving to trial, with ongoing investigations to identify additional victims and any further accomplices involved in the scam.
South Korea, a major hub in the global cryptocurrency market, has witnessed several such scams, prompting calls for stricter regulations to protect investors. The arrest of Byun could lead to tighter controls and enhanced oversight in the industry as authorities work to prevent future fraud.
The case reflects a broader global issue, as countries around the world continue to grapple with the challenges posed by cryptocurrency scams.
