Main to remember
- A South Korean man led a ponzi program of $ 60 million targeting more than 2,200 investors on condition of AI and crypto.
- The scam promised 300% of returns and mainly victims affected from 50 to 70 years, many of which did not know cryptographic technologies.
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South Korean police arrested a man in sixties for orchestrated a ponzi program of $ 60 million in probation for a previous fraud, according to a Friday report by the Yonhap news agency.
The suspect, identified as Mr. A, and six accomplices would have defrauded investors between October 2020 and January 2022. The group organized promotional events in Gangnam, Seoul, saying that they are running businesses in artificial intelligence (AI) and crypto.
Promising yields of 300%, the group attracted more than 2,200 investors, with individual contributions ranging from around $ 770 to $ 770,000. The operation followed a typical model of the Ponzi program, using new investors funds to pay the returns to previous participants until the program has finally collapsed.
Mr. A recruited family members and knowledge to manage various aspects of the operation, including finance, IT, marketing and investors’ recruitment. Police began investigating in September 2022 after receiving complaints, which led to a two -month -old man’s hunt when the suspect disappeared before his preliminary hearing.
The arrest revealed that Mr. A had served a two -year suspended sentence from July 2021 for a similar fraud program when he launched this new operation.
“Ponzi’s diets are crimes that deserve stronger sanctions because they translate into many victims and make it impossible to recover losses,” said a police spokesperson, noting that many victims were aged 50 to 70 and do not know AI or cryptography technologies.
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