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Lawsuit accuses South Korean cryptocurrency exchange of defrauding US$3.5 billion and tens of thousands of people defrauded – Bitcoin News

South Korea has filed a class action lawsuit accusing the cryptocurrency exchange V Global of defrauding investors. According to reports, the police estimate that 69,000 people have invested in cryptocurrency exchanges, with losses of 3.8 trillion won.

Crypto exchange sued for defrauding investors

South Korean cryptocurrency exchange V Global was accused of fraud worth 3.8 trillion won (3.5 billion U.S. dollars).

130 victims have filed a class action lawsuit. Daegeon, a law firm representing the victims, stated: “The 130 victims decided to file a joint complaint with the Gyeonggi Southern Police Agency on June 4 to prosecute three executives and employees including the CEO of the cryptocurrency exchange V Global. According to local media reports:

The police estimated that 69,000 victims invested in V Global and lost 3.8 trillion won.

Daejian’s lawyer Han Sang-joon explained, “In fact, there are 20,000 to 30,000 victims who did not get their money, and 600 billion to 1 trillion won has not been returned.” However, he emphasized that “it may be even worse. Great.” In April, V Global filed a lawsuit against Daegeon for defamation.

V Global held briefings across the country from August last year until recently, promising investors that if they open an account at a cryptocurrency exchange and deposit at least 6 million won in the account, they will “recover 18 million won, which is 3 Times”. Investment in a short period of time. “

The victim also stated that V Global divided investors into 7 levels and promised to pay every time a new member was introduced. Investors soon realized that the cryptocurrency exchange was operating a Ponzi scheme, and the investment of the existing members would be returned with the funds of the new members. V Global also issued its own native token.

Earlier this year, Gyeonggi Southern Police Agency suspected that V Global was engaged in illegal activities and launched an investigation. According to reports, since the company held an investment briefing and recruited investors from across the country, the police are expanding the scope of the investigation.

Last month, the police raided the cryptocurrency exchange and V Global confiscated 240 billion won. The head of the National Investigation Headquarters Minami Valley Jun said: “We have currently registered about 60 suspects, and we are analyzing the confiscated items before prosecuting.”

What do you think of this case? Let us know in the comments section below.

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