South Korean Tech CEO Arrested in $366 Million Cryptocurrency Scam

Byun Young-oh, the CEO of South Korean technology firm Wacon, has been arrested for allegedly orchestrating a $366 million cryptocurrency scam that defrauded over 500 investors. The scheme, executed through a platform named MainEthernet, reportedly involved a Ponzi-style operation, primarily targeting elderly citizens.

Wacon, a company with approximately 12,000 members, is suspected of operating as a Ponzi scheme or multi-level marketing (MLM) campaign. The firm offered virtual currency staking products, including tipping and mainnet services, without proper registration with financial authorities. With branches spread across South Korea, Wacon lured investors by promising substantial returns, with interest rates ranging between 45% and 50% on Ethereum deposits.

The scam, which centered on MainEthernet’s digital wallet service, attracted investors with promises of secure and high-yield returns. However, by mid-2023, reports emerged that investors were unable to withdraw their funds, raising alarm about the platform’s legitimacy. Despite these concerns, Byun reassured investors that the issues would be resolved within months. However, by November 2023, the company’s imminent collapse became evident as MainEthernet’s Seoul office removed its signage, signaling deeper troubles.

The Seoul Central District Prosecutors’ Office has formally charged Byun and his accomplice, identified only as Yeom, with fraud. The case is anticipated to go to trial soon as prosecutors continue to investigate the full extent of the scheme. Authorities are working to identify additional victims and potential accomplices. Byun, however, denies any involvement in a Ponzi scheme, claiming ignorance of such structures. The investigation is ongoing.

This report is based on information provided by local media outlets Cheonji Daily and iNews24.

source