Four executive employees of South Korean crypto exchange V Global have been arrested on charges of alleged fraud in a case that police say involves 52,000 victims and cumulative losses of more than US$1.9 billion, according to local media reports.
- It was reported that V Global lured investors by promising 300% returns. The exchange required new members to create accounts with 6 million Korean won (about US$5,300) in initial deposits with a supposedly guaranteed return of 18 million won.
- The exchange also reportedly promised users 1.2 million won in commission if they successfully referred another investor, much like a pyramid scheme.
- Some money was returned to users, as promised, but police discovered that those funds had been actually taken from newer users’ deposits.
- Investors claim the case involves even more victims and money — more than 60,000 and US$3.3 billion. Police have booked and started investigating 70 employees of the exchange.