The authorities of South Korea last week suspended the activity of the financial pyramid related to cryptocurrencies, the victims of which were about 56,000 people who invested over 21.2 million won (about $ 18.7 million).
As Korea Joongang Daily reports, a special unit of the Seoul Public Security Police detained two scheme managers. One of them was responsible for the website sales, the second - for the cryptocurrency exchange. In addition to them, 10 people were arrested, involved in the involvement of citizens in the pyramid since May last year.
The media writes that in the process of catching criminals the police used advanced technological solutions, including an “artificial intelligence [AI] investigator.”
Through keywords such as Ponzi, loan and recruiting members, we were able to teach the AI patterns of Ponzi schemes. The program can also identify advertisement patterns and identified the enterprise in question, which [was caught] with evidence provided by an unnamed informant. In our stakeout, we saw that most people attending the swindler’s presentation for membership were elderly people in their 60s and 70s.
Section chief, The Seoul Special Judicial Police Bureau for Public Safety second investigation team
According to the authorities, two managers in June last year created an website access to which was only available to participants in the scheme, and a cryptocurrency exchange. Investors were charged an annual commission of $ 388 for regular membership and $ 865 for a premium. As in other financial pyramids, for attracting new participants to the scheme, existing investors were entitled to bonuses.
The company carried out all calculations with the help of the M-coin token not represented on the exchanges, the cost of which, according to the promises of the organizers, was to grow 3 times in the near future. Among the victims of the scheme were many representatives of the older generation who did not understand the nature of digital assets.