- A South Korean Ponzi scheme is still milking unsuspecting investors as they continue to have faith in the scheme.
- The victims are slowing down the progress of police investigations of the investment platform amid hopes that they will be able to triple their investments.
- V Global is under investigation for allegedly defrauding investors to the tune of a whopping $3.6 billion.
- Despite law enforcement agents freezing the assets of the company, agents of the firm have brazenly informed investors that the company is not under investigation.
A South Korean investment firm is about to hit all the major headlines after it has come under investigation for being a huge Ponzi scheme. If the firm is found guilty of the charges, it could possibly be the largest crypto Ponzi scheme in the world, as investigators say that victims have been swindled to the tune of a staggering $3.6 billion.
Despite being under the scrutiny of law enforcement agents, victims maintain faith that the company will deliver on its promise to triple their initial investments.
V Global: Yet another Ponzi scheme!
Ponzi schemes are becoming a thorn in the side of cryptocurrencies as a result of their unfortunate frequency. The latest in the roll of crypto Ponzi schemes is V Global, a South Korean investment platform that promised to triple their user’s initial investments within 6 months.
Such a mouthwatering offer enticed scores of investors who rushed to take advantage of the opportunity. According to reports, around 69,000 investors were fleeced out of a staggering 4 trillion won, which is around the 3.6 billion mark in dollars. The sheer enormity of the Ponzi scheme places it among the top echelons of cryptocurrency scams in history.
V Global sold its native token and also went ahead in offering bonuses of around $1,000 to those who referred new investors to the scheme.
The news agency Yonhap broke the original news, stating that officers of the Gyeonggi Southern Police Agency’s Violent Crime Investigation Team raided 22 offices affiliated with the investment platform, and also froze assets worth 240 billion won.
The Daejeon law firm and 130 of the victims filed a joint complaint after about 30,000 users failed to get their money back, triggering a full-scale investigation from law enforcement agents.
On the Flipside
- The occurrence of cryptocurrency scams has dramatically risen by 1,000% since October 2020.
- To mitigate the frequency of cryptocurrency scams, Binance has installed CipherTrace to track dubious crypto transactions.
- The onchain security solution will help build greater trust among users, regulators and financial institutions.
Stoking the Embers of Faith
Despite the massive investigation that the company has become embroiled in, many of the victims still maintain their faith that V Global will honor its promises to them. Their zealous belief is reportedly slowing down the pace of the investigation, and the joint lawsuit, as victims are refusing to report the fraud.
V Global also continues to stoke the embers of faith with employees sending out text messages to ‘investors’ saying that the company is not under any investigation. According to one victim, the company is “telling investors to wait and see to prevent them from reporting to the police.”
In light of all these occurrences, the company put up a post on the website denying that it is a Ponzi scheme, even going as far as to file complaints of defamation and business obstruction. These actions have had their intended effect of convincing investors that the company is legitimate and will keep its word in tripling their initial investments.