Korean police are investigating allegations that the domestic Bitcoin (BTC) and Ethereum (ETH) cryptocurrency mining “pools” are fraudulent.
According to Yonhap News Agency and Asia Kyung Jae Seoul Metropolitan Police AgencyFinancial Crimes Investigation Unit said it is investigating a pool named Ethlot.me He worked with colleagues at police stations across the country on the incident.
The alleged victim group said they were left out of their pockets after being told that they could expect “guaranteed income” by “buying” cryptocurrency mining rigs. This device was said to be remotely controlled in countries such as Kazakhstan.
The initiative seems to be centered around a company named EslotAn office was opened in Seocho-gu, Seoul last November.
According to police, the company has been actively recruiting through its website Ethlot.me since January 2022. However, the company’s website went down earlier this month, bringing down the group chat room of the chat app platform, the community’s main communication channel. Cacao – Has also been removed.Company’s Neighbor The blog has also been deleted.
Cryptonews.com I tried to contact the company by phone, but I couldn’t talk to a member of the Ethlot staff.
However, the group’s Instagram account still seems to be online, showing evidence of aggressive marketing activity in Seoul. This includes advertisements at city bus and subway stations, and commercials aired on outdoor digital signs in public squares.
One post shows what looks like an Eslot staff member or associate holding a banner in Kazakhstan. The author of the post claimed that “all our mining machines are here.”
The contributor also said, “I promised a bond and a safe investment, so I can trust and invest.”
“People who are struggling to work from home because of the coronavirus pandemic can enjoy seeing money in their bank accounts. You can stop using the word” empty “. I can do it [talk about your account] now. “
In another post, the company wrote:
“In the Ethlot.me community, you can choose from a variety of mining equipment that you can rent or buy.”
Police officials said investors were told they could expect a “guaranteed daily return of 0.7% to 3.0%” on their stakes.
Ethlot is believed to operate four group chat rooms: “general” rooms, VIP rooms, VIP rooms, and prestigious “SVIP rooms”. Each of these reportedly provided different levels of “investment information.”
Access to each group chat room was granted depending on the size of the investment made by the individual. In essence, the group has promised better performing mining rigs that investors can buy, the more embarrassing investors are.
In a post explaining the benefits of SVIP membership, the company wrote that an investment of $ 2,333 would give investors a “expected profit” of 1.5% per day, or about $ 32 per day.
By increasing its investment to nearly US $ 4,000, investors will be able to pay for more powerful mining machines, with daily income of US $ 66.
But for the largest spenders, the $ 6,225 fee will rake investors at around $ 120 a day, the company said.
The company added that payments are made every seven days.
Last year, a large-scale campaign to promote the pool took place, Yonhap News Agency added. Shilla Hotel Seoul – One of the most famous hotels in the capital.
A law firm representing a group of about 20 victims claimed that “at least 1,000-2,000” people were involved in alleged fraud and suffered millions of US dollars in monetary damages. I added that.
In 2020, police arrested “tens” across the country after discovering allegations of US $ 44.5 million in Ethereum wallet fraud.Named scam EtherWalletIt is believed to have inhaled about 3,000 victims.
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