According to ChainCatcher, according to Cryptonews, Byun Young-oh, CEO of Wacon, a wholly-owned subsidiary of LG Group, was arrested on suspicion of planning ETH-related cryptocurrency scams. The Seoul Central District Prosecutors' Office will prosecute Byun and another suspect, Yeom, for fraud.
The MainEthernet wallet service operated by Wacon stopped withdrawing funds in the summer of 2023. In November last year, Byun met with investors and claimed that he would return their money and said that "all problems can be solved in just 4 months." But prosecutors believe that this is a Ponzi scheme involving hundreds of billions of won, with about 500 victims, mainly elderly people. Byun had promised a return of up to 45% to 50% on investments and denied the Ponzi scheme allegations last year.