A fraud scheme called Bitcoin Pyramid swindled millions of Koreans
Two men from South Korea have been sentenced for creating a bitcoin pyramid scheme that swindled some 20 billion Korean won ($20 million) from investors.
On April 19, a judge from Seoul's Incheon District Court issued fines of $15 million and $8 million, respectively, to the two fraudsters, according to local news source Yonhap.
The report said the two men started the scheme in 2015 and subsequently built a multi-level company by promising investors high returns through investing in bitcoin.
"The multi-level transaction is a risk to the socioeconomic order with mass production of many victims," the judge was quoted as saying in the report. The fines were given based on the considerable sum they had attracted from victims of the scheme.
There may be several fraud schemes like Bitcoin Pyramid due to increasing popularity of cryptocurrency. Their motive is to accumulate large fund by defrauding investors, mainly the people who don’t have enough knowledge about crypto world. So it is my advice to everyone, don’t invest in any scheme or company until you review their history so that you can save your hard-earned money.
These types of people or companies are just creating bad reputation for cryptocurrency. They opt short-cut way to earn huge money. They really deserve punishment so that crypto world can grow. I think Seoul’s Incheon District Court gave right verdict. Don’t get cheated.
Read more: https://www.coindesk.com/bitcoin-pyramid-scheme-amassed-20-million-in-south-korea/