According to TechFlow, Byun Young-oh, CEO of South Korea's Wacon, was arrested for suspected Ethereum-related cryptocurrency fraud. The Seoul Central District Prosecutor's Office will prosecute Byun and another suspect, Yeom, for fraud.
The MainEthernet wallet service operated by Wacon experienced withdrawal difficulties in the summer of 2023. Prosecutors believe this is a multi-level marketing fraud scheme worth hundreds of billions of won, with about 500 victims, mainly elderly people.
Byun had promised investment returns of up to 45% to 50%, but has denied allegations of a Ponzi scheme.
