HTS Officials arrested for Embezzlement of User Funds

The president and executives of South Korean HTS were arrested for illegally reallocating the firm’s holdings in bitcoin and ether to their personal accounts
16 May 2018   486

The police of Southern Seoul and local financial authorities headed by inspector Jeong Dae-seong aquired an arrest ordert for 4 executives at HTS including the main developer of the HTS trading platform and operator of the exchange on May 14. As declared in the prosecutor’s office of Seoul, HTS president Shin together with the three representatives of the firm replaced user funds kept in the the company`s cryptocurrency wallet  to external bank accounts, mainly stealing cryptocurrencies from the company’s customers.

Formerly the third largest crypto exchange in South Korea, Coinnest was temporarily closed by the local officials after its executives were arrested in March 2018 for stealing user funds. Then it was reported that millions of dollars in user funds were transmitted to the personal accounts of the firm’s executives.

The prosecutor’s office of Seoul revealed that the local police initially aimed to raid the headquarters of HTS together with Coinnest, but then decided not to in order to concentrate on the investigation on Coinnest, as the government received solid evidence of malpractice.

HTS is not the first exchange in South Korea to be checked and officially investigated by the local police and investigators from the Korea Financial Intelligence Unit (KIU), following Coinnest and Upbit.

Crypto Billionaire to Lost 5.5k BTC Due to Fraud

Thai scammers convinced 22 yo Finnish crypto billionaire to invest in their 'investment' scheme
13 August 2018   291

The 22-year-old cryptocurrency millionaire lost more than 5,500 bitcoins after taking part in the investment scheme in Thailand. The case attracted public attention because of the possible participation of a Thai actor. This is reported by Bangkok Post.

A group of scammers in June 2017 persuaded Finnish businessman Aarni Otawa Saarimaa to invest in several Thai securities, a casino in Macau and a crypto currency called Dragon Coin.

Scammers claimed that Dragon Coin could be used in Macau casinos. In addition, they brought Saarimaa to this casino to demonstrate the legitimacy of their project. Saarimaa transferred 5 564 BTC to fraudsters.

In January, without receiving any income for his investments, Saarimaa filed a complaint with the Crime Suppression Division's (CSD), along with his local business partner, who believed that this investment scheme was fraudulent.

CSD began to investigate the case and stated that the group made no investment for Saarimaa, instead transferring all the bitcoins to Thai baht and placing these funds on seven bank accounts.

Although it is not clear when exactly the scammers sold the bitcoins, CSD announced that they raised about 800 million baht or about 24 million dollars.

Then followed a months-long investigation, according to which CSD began to suspect that the Thai film actor Jiratkisit "Boom" Jaravijit also took part in the fraudulent scheme - he was arrested last Wednesday.

In addition, the CSD stated that it suspects the actor's brother, Princess Jaravijit, as the "instigator" of this entire scheme. He left Thailand, traveling to South Korea, and then to the United States. According to the Bangkok Post, CSD is currently working with the US to track him down.