South Korean Tech Executives Arrested in $365 Million Crypto Fraud

Authorities in South Korea have arrested the CEO of Wacon, Byun Young-oh, and Vice Chairman Yim Mo-Soo for their roles in a large-scale cryptocurrency fraud.

The scheme, which allegedly defrauded investors of approximately 500 billion won (around $365 million), primarily targeted elderly individuals with deceptive promises of high returns.

The arrests follow claims that Wacon operated an unlicensed Ponzi scheme, misleading around 12,000 members through fake crypto investment products.

The company allegedly used tactics like multi-level marketing and false assurances of returns to lure investors, but failed to deliver on its promises.

The Seoul Central District Prosecutors’ Office has charged Byun and Yim with fraud, noting that the scheme involved significant financial deceit.

Ongoing investigations are also examining Wacon’s parent company, SAK-3, for similar fraudulent activities, with potential additional losses estimated at 1 trillion won.