According to reports of the local police of one of the South Korean provinces, they recently detained a criminal group consisting of 7 people, who specialized in crimeware under the pretext of investing in digital currencies. This group provided its services as a company to attract investment in the crypto currency, and the main clients of the "company" were elderly people who are not strongly oriented in gaining access to the market of crypto-currencies.
Scammers predicted their customers income of about 200 percent of the deposit amount in a short time, but in reality they did not make any investments, but acted on the principle of a "financial pyramid", i.е. the money received was used by them to ensure short-term solvency of the "project" and to create the appearance of its profitability and reliability. The main victims of fraud were people from the provincial regions of the country, where the understanding of the sufficiency of crypto-currencies in the population either was absent altogether, or was quite mundane.
The fraudulent scheme successfully worked for two years, and brought its creators income more than 38 million US dollars.
The police turned their attention to the activities of the "pyramid" after it was approached by victims who "invested" $ 4 million. During the investigation, about 4,000 victims of criminal activities were detained.
Law enforcement authorities of South Korea filed criminal charges against several defendants in several criminal cases. They are charged with laundering money, as well as organizing the activities of an investment company without a license. Now the criminals are in custody, and their fate will be decided by the court.