A class action lawsuit has been filed in South Korea accusing
cryptocurrency exchange V Global of defrauding investors. The police
reportedly estimate that 69,000 people have invested with the crypto
exchange and the damage amounts to 3.8 trillion won.
Crypto Exchange Sued for Defrauding Investors
South Korean cryptocurrency exchange V Global has been accused of fraud worth $3.8 trillion won ($3.5 billion).
A class action lawsuit has been filed by 130 victims. Daegeon, a law
firm representing the victims, said: “The 130 victims decided to file a
joint complaint with the Gyeonggi Southern Police Agency against three
executives and employees, including the CEO of V Global, a
cryptocurrency exchange, on June 4.” According to local media:
The police estimate that 69,000 victims have invested with V Global and the damage amounts to 3.8 trillion won.
Han Sang-joon, a lawyer at Daegeon, explained that there were
“actually 20,000 to 30,000 victims who did not get their money back, and
600 billion to 1 trillion won in money that was not returned.” However,
he emphasized that “It could be bigger.” In April, V Global filed a
complaint against Daegeon for defamation.
V Global held briefing sessions across the country from August last
year until recently, promising investors that if they open an account
with the crypto exchange and deposit at least 6 million won into the
account, they “will get back 18 million won, three times the investment
in a short period of time.”
The victims also said that V Global divided investors into 7 levels
and promised to pay them each time they brought in a new member.
Investors soon realized that the crypto exchange operated a Ponzi scheme
and the investment of existing members is returned with the money from
new members. V Global has also issued its own native token.
Gyeonggi Nambu Police Agency suspected illegal activities at V Global
earlier this year and launched an investigation. The police are
reportedly expanding their investigation nationwide since the company
held investment briefing sessions and recruited investors from all over
the country.
Last month, the police raided the cryptocurrency exchange and V
Global forfeited 240 billion won. Nam Gu-jun, head of the National
Investigation Headquarters, said, “We have booked about 60 suspects so
far, and we are analyzing the confiscated items before indictment.”
source link : https://news.bitcoin.com/lawsuit-korean-crypto-exchange-3-5-billion-scam-tens-of-thousands-defrauded/
