South Korean Authorities Raids Crypto Firm in Alleged Crypto Scam

South Korean Authorities Raids Crypto Firm in Alleged Crypto Scam
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A Local firm in South Korea, Shinil, was raided in the early hours of yesterday by authorities of the country due to an alleged crypto scam that saw the company promise investors the remains of a wrecked Russian ship, Dmitrii Donskoi, during the Russo-Japanese war in 1905.

According to report from a local news outlet, TheKoreaHerald, about 27 investigators from the Seoul Metropolitan Police Agency were authorized to gather evidence related to the alleged crypto scam.

In July, Shinil had posted images of the ship used in the Russo-Japanese war, claiming that the ship had been found in the coast of Ulleung Island, South Korea. The image of the Shipwreck was used as a bait to lure investors into purchasing the company’s digital token, The Shinil Gold Coin.

This move saw investors purchasing a total of 200 tons of Shinil gold coin, valued at 150 trillion won ($134 billion). According to the report, investors bought the company’s digital token due to the estimated value of the Russo-Japanese War Ship.

Shinil later did a press conference to clarify the information earlier given by the press, stating that the value of its digital currency was overestimated and that the 200 ton of Shinil gold coin purchased was valued at 10 trillion won ($9 billion) as opposed to the $134 billion reported by the media.

The company was optimistic about the future value of the digital token, by promising investors that the price of the coin will rise from the current 200 won ($0.18) to 10,000 won ($9) in the coming weeks.

Since the investigation is still ongoing by the South Korean Police, the CEO of the company, Choi Yong-Seok, has been banned from leaving the country pending on when the investigation of the alleged scam is concluded.

In a similar development, head of Shinil Singapore’s branch, Yu Ji-beom, one of the pioneers of the alleged crypto scam, has been convicted of real estate fraud but he fled to Vietnam to escape arrest.

According to reports from another news outlet, the company has gotten over 100,000 investors since its launch, earning 60 billion won ($54 million) from its investors.

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