A South Korean CEO is reportedly facing fraud charges for allegedly orchestrating a massive $364.9 million Ethereum (ETH)-themed crypto scheme.
According to iNews24, Byun Young-oh, the CEO of tech firm Wacon, was arrested for allegedly running a pyramid scheme disguised as a legitimate crypto investment opportunity.
The CEO was arrested along with an alleged accomplice surnamed Yeom. They are now expected to be tried by the Fifth Criminal Division of the Seoul Central District Prosecutor’s Office on fraud charges.
The alleged scheme targeted mostly elderly citizens by promising them interest rate returns as high as 50% if they deposited their Ethereum through Wacon’s wallet service, MainEthernet. They also reportedly received benefits for referring acquaintances to do the same.
However, the fraud reportedly began to unravel last year when online reports claimed investors could not withdraw their deposits from the platform. Wacon has been reportedly not paying participants the principal and interest since June 2023.
Byun has reportedly denied having anything to do with any Ponzi scheme.
The police are still investigating whether there is additional damage and more accomplices. To date, they have identified at least 500 victims.
Authorities estimate that participants of the investment scheme may have lost 500 billion won worth nearly $365 million.
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