The fraudulent scheme led by Byun Young-oh primarily targeted elderly individuals, capitalizing on their lack of familiarity with cryptocurrency technology.
The operation began showing signs of failure in the summer of 2023 when investors faced issues withdrawing their funds.
The arrest of Byun Young-oh has raised significant concerns about the overall safety of cryptocurrency investments in South Korea.
Wacon CEO Byun Young-oh has been arrested over allegations of massive Ethereum-themed fraud. Prosecutors claim that this scheme scammed over 500 individuals, mainly elderly investors, out of approximately $366 million.
Elderly Fall Prey to Crypto Scheme
Byun Young-oh has been arrested, as noted by Mario Nawfal’s Roundtable through X Space, after allegedly conducting a Ponzi-style scam through their company’s service, MainEthernet, a platform that was promoted as a secure wallet for Ethereum investors.
https://twitter.com/RoundtableSpace/status/1822901278365684047
However, instead of providing the promised security, it became the link through which fraudulent plans were executed. Byun had promised 45% returns, targeting particularly vulnerable elderly individuals seeking safe investment opportunities.
The operation began in the summer of 2023 when investors started facing difficulties in withdrawing their funds. Despite these issues, Byun allegedly continued to reassure investors up until November 2023, before the physical signs of collapse appeared with the removal of MainEthernet’s office signage in the upscale Gangnam District of Seoul.
The majority of the victims were over 60 years old, a population that is less familiar with digital currencies. It is estimated that over 500 people may have invested with Wacon. The extent of the fraud has not only devastated many financially but also highlighted the susceptibility of elderly investors to such high-tech scams.
Comparing Crypto Calamities: From Terra to Wacon
This has happened just after Do Kwon, founder of Terra, was arrested amid TerraUSD and Luna recent collapse, totaling a $45 billion market cap loss. This incident has brought concern regarding the safety of cryptocurrency investments in South Korea. This nation has been both a hub for digital currency activity and a hotspot for related scams.
The Seoul Central District Prosecutors’ Office, particularly its Fifth Criminal Division, is handling the case. Both Byun and his associate Yeom face serious fraud charges, with further investigations underway to uncover potentially more victims.
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