As more people continue to get in on the Bitcoin craze, more attention is being paid to security issues, which could lead to exchanges getting hacked, leading to theft of people’s funds. On Tuesday, the Korean crypto exchange Youbit filed for bankruptcy after losing $37 million in a hacking attack, and a lawsuit accusing it of a staggering $3.5 billion scam was filed on Tuesday.
According to the Korea Blockchain Industry Association, the number of initial coin offerings (ICOs) in Korea reached an all-time high in 2018, raising a total of $3.5 billion USD. The Korea Exchange has also received a number of complaints from investors who have lost more than 50 billion KRW (about $3.4 million USD) each.
On June 25th, the Seoul High Court ruled that the management of Coinrail, a South Korean cryptocurrency exchange, was liable for fraud involving $3.5 billion worth of stolen cryptocurrency. The lawsuit was filed by investors who have been defrauded of their coins after coins were reported to have been stolen from Coinrail in Japan on May 10th. The stolen coins were then sold on the Bithumb exchange in South Korea, which then turned around and sold the coins on other exchanges in the country, and then in China, and the U.S. The stolen coins are worth approximately $40 million.. Read more about bitcoin price and let us know what you think.A class action lawsuit has been filed in South Korea, accusing cryptocurrency exchange V Global of defrauding investors. Police estimate that 69,000 people have invested in the cryptocurrency exchange and the loss is 3.8 trillion won.
cryptocurrency exchange sued for defrauding investors
South Korean cryptocurrency exchange V Global is accused of defrauding 3.8 trillion won ($3.5 billion). 130 victims have filed a class action lawsuit. Daegeon, the law firm representing the victims, said: The 130 victims decided to go to court on June 4 to file a joint complaint with the Gyeonggi South police against three executives and employees, including the CEO of the cryptocurrency exchange V Global. According to local media: Police estimate that 69,000 victims invested in V Global and the loss is 3.8 trillion won. Han Sang-joon, Daegeon’s lawyer, said that in fact 20,000 to 30,000 victims have not received their money and that 600 billion to 1 trillion won have not been recovered. However, he stressed that it could be more. In April, V Global filed a lawsuit against Daegen for defamation. V Global held information sessions across the country from August last year until recently, promising investors that if they opened an account with the cryptocurrency exchange and deposited at least 6 million won, they would get back 18 million won, tripling the amount invested in a short period of time. The victims also revealed that V Global divided investors into 7 tiers and promised to pay them every time they recruited a new member. Investors soon realized that the cryptocurrency exchange operated on a Ponzi scheme where the investments of existing members were paid back at the expense of the money of new members. V Global has also introduced its own token. The Gyeonggi Nambu Police Agency suspected illegal activities at V Global earlier this year and launched an investigation. Police are reportedly expanding their investigation to cover the entire country, as the company has held investment briefings and attracted investors from across the country. Last month, police raided a cryptocurrency exchange and seized 240 billion won from V Global. Nam Gu Jun, head of the national research staff, said: To date, we have arrested approximately 60 suspects and analyze the seized items before proceeding with charges. What do you think of this case? Let us know your comments in the section below. Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.The latest news out of South Korea could have a significant impact on the cryptocurrency world, as a beleaguered crypto exchange is accused of costing investors $3.5 billion. Bithumb , one of the country’s largest crypto exchanges, has been accused of defrauding investors of over $1 billion, with the exchange itself being held responsible for almost $500 million of the alleged scammers’ ill-gotten gains. The suit, which has yet to be officially filed, names executives at Bithumb and several other companies, including the other exchange named in the suit, Coinzest .. Read more about bitcoin price prediction and let us know what you think.
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