Victims of a $3.6 Billion Ponzi scheme still Trust the Exchange Running it

Since the rally in the crypto markets in 2020, it is safe to say that crypto-backed financial products have had a good year. 3iQ, the investment management firm based in Canada, has announced the launch of its exchange-traded fund (ETF), which will be backed by Ether. It will be listed on the Toronto Stock Exchange, thereby enabling investors to get exposure to the crypto asset class. Investors will be able to use the Ether ETF for gaining exposure to ETH without buying, storing or selling the asset on their own. The Gemini Exchange’s custodial arm, Gemini Custody will hold the coins that back the shares. The product has also joined 3iQ’s Bitcoin Fund, which had been added to the Toronto Stock Exchange in April. Upon its launch, it had listed a total of 1.5 million Class A shares. Upon its launch, the Bitcoin Fund had been priced at $11 per unit, but it had seen an increase in value soon enough. 3iQ had announced in October that the Bitcoin Fund had managed to cross the $100 million market cap level. While there was a lot of initial fanfare at the announcement of the Ether ETF, things didn’t go completely as planned for the investment management firm. The investors were concerned that the fund hadn’t been available for trading at the opening bell, but it had only been halted because the closing of its IPO prospectus had been delayed. Eventually, trading had commenced, albeit it was two hours late. Throughout the rest of the day, a total of 345,331 shares of the fund had been traded. The performance of the fund had been quite acceptable for the first day, as it had managed to reach an intraday high of $11.48 before it ended at a value of $11.02. Considering the fact that there had been a 0.5% drop in Ether on the day, investors would certainly be pleased with a 3.5% gain where the ETF is concerned. It is understandable that the interest in the proliferation of instruments backed by cryptocurrencies will increase within the crypto space. The first Bitcoin ETF had also been launched in September. Hashdex, a Brazilian fund manager, had announced that they were launching the ‘Hashdex Nasdaq Crypto Index’ in partnership with NASDAQ on the Bermuda Stock Exchange. According to the announcement, there will be a total of 3 million Class E shares in the launch. Infomoney, the local news source reported that the launch would happen before the end of the year. However, these funds have not made any move into the US market. There is an extensive history of the US Securities and Exchange Commission (SEC) of denying all crypto ETF applications, a number of which had been submitted late last year. However, there is a possibility of a change in stance. The Commissioner of the agency, Jay Clayton will be stepping down from his position at the end of 2020. Even though there is no news about who will replace him, but the new appointee just might look at crypto ETFs favorably.

Just recently, it was revealed that the South Korean Police is currently running an investigation on a South Korea-based crypto-exchange. The reason behind the ongoing investigation and the police paying too much attention to the exchange is because it is a scam.

The reports suggest that the particular exchange is responsible for running a huge Ponzi scheme. Therefore, the police are currently running its investigation on the exchange to get to the bottom of the matter.

So far, the exchange has carried out a scam worth $3.6 billion through the Ponzi scheme. However, the number of scammed amounts continues to grow as the investors are still investing in the Ponzi scheme.

The investigation currently underway by the police of South Korea is facing a huge obstacle, which the authorities are finding hard to handle. The authorities have revealed that the exchange is still dealing with many investors who are still investing money into the exchange.

Many investors are still under the impression that they would be able to get returns for their investments. However, it is just a Ponzi scheme and the investors are just dropping their investments into a well with no returns.

The police have started investigating the Ponzi scheme as a result of a joint lawsuit that was filed against the exchange by investors that have seen through the exchange’s scam.

It was back on June 4, when a joint lawsuit was filed against V Global in response to several complaints. The law firm that filed the lawsuit against V Global is Daegon, which is a popular law firm from South Korea.

The lawsuit has been filed against the exchange, its chief executive officer, as well as three more executives of V Global. Daegon has reportedly lodged the complaint on behalf of the Gyeonggi Nambu Policy Agency and 130 investors that lost their money to the Ponzi scheme.

In the report, Gyeonggi Nambu Policy Agency has reported that it is currently investigating the Ponzi scheme that V Global is currently running. So far, the Ponzi scheme has managed to target 69,000 investors and has lured funds out of them.

With hopes of huge gains from their investments, the investors have ended up giving a total of $4 trillion won to the exchange. At the time of writing, the 4 trillion won figure translates to $3.6 billion. The Ponzi scheme claims that the users would be getting 300% of their investments from the exchange. This is the reason why the exchange has managed to lure that many investors into giving away their money.

While the Gyeonggi Nambu Policy continues investigating the matter, the exchange is also playing its own game. The exchange is claiming that it is just an act of defaming the exchange and hinder its business operations.