Summary:
- Accusations: CEO Byun Young-oh and Yeom allegedly ran a Ponzi scheme through the MainEthernet platform, defrauding over 500 investors.
- Targeted Demographic: The scam primarily targeted elderly citizens, luring them with promises of 45% to 50% returns on Ethereum deposits.
- Scale of Fraud: The operation allegedly amassed $366 million, operating under the guise of virtual currency staking and other services.
- Business Collapse: By November 2023, MainEthernet’s Seoul office removed its signage, signaling the company’s downfall.
- Legal Action: The Seoul Central District Prosecutors’ Office has charged Byun and Yeom with fraud, with a trial expected soon.
Authorities in South Korea have charged CEO Byun Young-oh and his associate, Yeom, with orchestrating a massive Ponzi scheme through their platform, MainEthernet. The alleged scheme, which swindled over $366 million from more than 500 investors, primarily targeted elderly individuals by offering them exorbitant returns on Ethereum deposits, promising gains between 45% and 50%.
Operating under the name Wakon, with a reported membership of about 12,000, the firm engaged in virtual currency staking and mainnet businesses without proper financial registration. The platform operated branches throughout South Korea, raising concerns over its widespread influence.
Signs of trouble emerged in November 2023 when MainEthernet’s office in Seoul discreetly removed its signage, indicating a potential collapse. Now, with charges of fraud officially filed by the Seoul Central District Prosecutors’ Office, Byun and Yeom face trial as the full scope of their alleged crimes comes to light. The case underscores the vulnerability of elderly investors in the fast-paced world of cryptocurrencies and the importance of regulatory oversight.
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