Broken Korean cryptocurrency exchange: 69,000 victims asked for help, $3.4 billion evaporated without a trace

Last month, the Seoul police reported a scam involving the V Global cryptocurrency exchange. Accordingly, about 69,000 victims, mainly retirees and housewives who invested in V Global, are now empty-handed and are asking for help.

It is not clear who is behind this scam, but a source said a 31-year-old man with the surname Lee is the CEO of the exchange mentioned above.

According to authorities, this scam has a scale of up to 3.4 billion USD. A group of 130 trading clients recently filed a lawsuit against V Global in court. Among the defendants are three company leaders, several employees including Lee.

In August of last year, this exchange started recruiting new members to its multi-level coin model.

Specifically, this exchange has attracted investors by promising a huge profit of up to 300%. The victims are mainly housewives and pensioners who want to make a quick return on investments amid the pandemic.

Taking advantage of the greed of ignorant victims, V Global exchange has required new members to create an account with a minimum balance of 6 million won (about 5,300 USD), along with guaranteed super profits. is 18 million won.

The exchange also promises users that they will receive an additional 1.2 million won (approximately $1,060) in commissions if they successfully refer another investor.

According to the testimony of some victims, they soon realized that V Global operates under the Ponzi model (taking money from one person to another) because this cryptocurrency exchange divides investors into 7 levels to pay. interest rate. However, because of greed for high interest rates, many victims still risk to invest in V Global.