South Korean Police Probe Crypto Mining Outfit on ‘Ponzi Scam’ Accusations

Source: Busara/Adobe

South Korean police officials are investigating a crypto mining firm that allegedly unsuccessful to repay its investors – after promising them monthly returns as high as 12%.

Per this news agency Yonhap and also the newspaper Chosun Ilbo, mother and father walked in after lawyers representing several investors filed a legitimate complaint. The allegations focus on a strong named “Btbank.” The British transliteration from the company’s Korean name (비트뱅크) is “Bitbank” (to not be mistaken with the genuine Japanese crypto exchange of the name). Additionally, it seems to put into practice the name OK-Bit.

The firm’s website features marketing details about KOK Play. This “multi-tiered membership” project utilizes an ethereum (ETH)-based altcoin named KOK Play and it is presently under analysis through the South Korean police. has formerly reported on KOK Play and also the legal situation building round the firm. Following a publication in our newest set of KOK Play, a readers contacted to assert they “have family people who have been deeply involved” in KOK Play. Exactly the same individual mentioned that they “seen the organization destroy relationships” with “deceptive tactics.”

Law enforcement mentioned that Btbank have been charged with neglecting to return investment stakes to the investors. The organization allegedly told investors they could generate income by mining tokens using rigs located in Columbia and abroad.

Like other suspected mining scams, the firm allegedly guaranteed would-be investors “guaranteed 3-7% monthly mining profits.” “High-tier” investors were advised they might expect 12% gains on their own stakes.

Investors were advised to create deposits in USD and were requested to take a position around $200,000 within the project. These were told the firm operated six mining centers in Columbia, additionally to some mining farm in Kazakhstan.

Another Crypto Mining Ponzi Plan?

Police declare that BtBank’s business design utilized a “multi-level structure” that gives “bonuses when existing investors register new investors.” The organization allegedly told would-be investors they could put no less than $250 in to the project. However it apparently stated that stakes were fully refundable and is withdrawn in the BtBank platform anytime.

Every time they employed a brand new investor, the organization allegedly guaranteed a current member’s “level” would rise. Prolific recruiters were advised they might earn greater than 50% monthly in bonus payments.

But lawyers have alleged that “since the center of the entire year,” many investors happen to be not able to create withdrawals. “Investors attempted to shut their accounts and recover their investments,” reported Chosun. But the organization apparently “delayed payment” for “several several weeks.”

Lawyers claimed that “more than 200 victims” happen to be playing no use of their.

Among the legal firms active in the class action lawsuit suit predicted that “more than 1,000 victims” might have been left up front.

BtBank stated it’s responded by developing “an investor association.” Additionally, it stated it might “focus on recovering investment by reduction of how big its headquarters” and reducing its “fixed costs.”

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