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.

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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.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.