Cryptocurrency scandal: Wacon CEO arrested for fraud – investigation details

Article: CEO of South Korean Company Wacon Arrested for Cryptocurrency Fraud

The CEO of one of South Korea’s technological companies, Wacon, Byun Young-oh, has been arrested on charges of conducting a major cryptocurrency fraud that had a negative impact on over 500 investors.

Ponzi Scheme through the MainEthernet Platform

Together with his accomplice known as Yeom, Byun allegedly operated a Ponzi scheme through a platform called MainEthernet. The company Wacon, consisting of around 12,000 members, is suspected of engaging in activities based on this scheme, offering investors products related to staking virtual currencies without the required registration with financial authorities.

A Massive Scale of Fraud

According to reports, the fraud amounts to a staggering $366 million and mainly targeted elderly individuals, promising them unbelievable returns ranging from 45% to 50% on Ethereum deposits. This proposition gained the trust of many investors, but in July 2023 reports of withdrawal issues started to surface, and by November of the same year, the company began to show signs of collapse.

Charges and Investigation

The Seoul District Prosecutor’s Office has filed charges against Byun and his associate Yeom, and the case is set to be expedited through the courts. Investigators are continuing intensive research to determine the actual scope of the fraud, aiming to identify additional victims and potential accomplices.

Denials and Support from Local Media

Despite the charges, Byun has denied involvement in the Ponzi scheme, claiming he had no knowledge of such structures. This case has been widely covered by local media outlets such as Cheonji Daily and iNews24, which have played a significant role in reporting and analyzing this scandal.

It is important to remember that investments and transactions involving cryptocurrencies carry substantial risks, and it is always prudent to carefully verify the credibility of the entities you engage with.