South Korean police arrest 60-year-old suspect for alleged 84 billion KRW Ponzi scheme while on probation

According to ChainCatcher, citing Yonhap News Agency, the Anti-Corruption and Economic Crime Investigation Unit of the Southern Gyeonggi Provincial Police Agency in South Korea announced on the 25th that they have arrested a 60-year-old suspect, referred to as Mr. A, who is accused of running an 84 billion KRW Ponzi scheme while on probation. Six accomplices have also been referred to the prosecution.

From October 2020 to January 2022, Mr. A and others held promotional events for AI and cryptocurrency projects in areas such as Gangnam District, Seoul, attracting over 2,200 investors with promises of “300% returns.” They defrauded investors of 84 billion KRW by using funds from new investors to pay “dividends” to earlier participants, operating a Ponzi scheme.

This individual had previously been sentenced to eight months in prison with a two-year suspended sentence for fraud in July 2021. Police have warned the public to be especially cautious of investment projects promising high returns, particularly those involving AI or cryptocurrencies, to avoid falling victim to Ponzi schemes.