South Korean law enforcement has uncovered the mastermind behind a Ponzi scam, a Bitcoin-based pyramid scheme that netted them nearly $19 million in revenue.
The financial pyramid called "M-Coin" was aimed at those who are not well versed in technology, mainly the elderly, pensioners and housewives, they were promised free issuance of cryptocurrency and bonuses for attracting new participants in the fraudulent scheme, according to the Korea Joon Gang resource. Daily.
Last week, the Seoul Judicial Police Special Public Security Bureau, which operates independently of the local police, arrested company executives and an online retailer for their involvement in fraud. In addition, ten people were arrested for recruiting new members of the financial pyramid.
In total, the founders of M-Coin, according to preliminary estimates, deceived 56 thousand people out of $18,7 million. The authorities noted that the majority of the guests of the M-Coin presentations consisted of people aged 60-70 years.
201 offices of the company were used to implement the fraudulent scheme. As in all such schemes, each office manager received a reward for each additional "investor" attracted, and the participants themselves received a reward for attracting more "investors" to their ranks.
Remarkably, the arrests of the founders of M-Coin were the result of using an AI-powered virtual investigator who was taught “Ponzi Scheme Patterns” with keywords such as “Ponzi”, “loan” and “hiring members”, which allowed him to identify advertisements. and other fraudulent content.
Source: 3dnews.ru