V Global, a well-known South Korean exchange was accused of a $1.5 billion scam with seniors and housewives being the target as we can see more in our latest cryptocurrency news.

The South Korean crypto exchange platform V Global allegedly lured 40,000 people into illicit multi-level deceit and the entire scam amounts to more than 1.7 million won which equals to $1.5 billion. The police raided plenty of places in the country related to the virtual crypto exchange and the notorious CEO known as LEE alleged to fundraising without the regulatory permission needed. The authorities blocked the exchange’s cash deposits as a part of the investigation.

The Gyeonggy Nambu Police Agency reported that it searched a new exchange headquarter in southern Seoul with 21 other places and froze more than $214 million left in the account. Another report shows that police are examining the accusation against the founders of the exchange for fraud under the Certain Economic Crimes Weighted Penalty Act, the similar Receiving Act, and the door-to-door sales business.

The main accusations against the exchange are gaining a deposit of 1.7 trillion won from 40,000 members between the months of August 2020 and January 2021. The announcement revealed that most of the people were elderly or housewives that have no experience in crypto trading. The investigation revealed that the exchange urged the investors to entrust their funds to the account and lured the members that expected high returns than their investment. According to the authorities, there was a pyramid element in the scam as the exchange promised to grant the introduction fee of 1.2 million won for each new member.

The report shows that the trading venue paid some members in the form of a block. The people who signed up earlier received the funds from individuals that entered the exchange later. Moreover, the police seem confident to deal with the fraud case as it revealed the intention to confiscate 240 billion won that was left In the exchange’s account.

As recently reported, The South Korean government profited from selling confiscated BTC from a 2017 crime and it’s worth hit $10.5 million more than it was at the time of the arrest. The cash was deposited in the account of the country’s national treasury. According to the reports coming out of the Suwon District Prosecutors Office, this is the first time that confiscated coins were sold by authorities and the first time that the coins moved since being stashed in cold storage in 2017.

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Source: https://www.dcforecasts.com/altcoin-news/v-global-south-korean-exchange-accused-of-1-5-billion-scam/