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.