Multimillion Scam Busted In South Korea

Many people were indicted on embezzlement charges and some top investors are on the run and have been put on an Interpol wanted list
20 December 2017   1923

South Korean authorities on Wednesday indicted over two dozen people associated with a cryptocurrency operation for their involvement in a multimillion dollar scam. The large-scale fraud scheme was being run by Mining Max, a cryptocurrency company that has a mining farm in Seoul.

The suspects, which include the company’s chairman and vice chairman, are accused of embezzling about $250 million from 18,000 investors in 54 countries, including the United States, South Korea, China and Japan. Many people were indicted on embezzlement charges but were not detained and some top investors, are on the run and have been put on an Interpol wanted list.

Prosecutors also believe only about $80 million of the investors' money was spent on buying equipment to mine cryptocurrency with the rest of it being used by the management for personal enrichment or to reward the top investors. About $110 million is thought to have been stashed in offshore bank accounts.

Bitmain Wants to Sue $4.3M From Ex-Employees

Tangled cased started back in 2015, when today's largest mining pool BTC.com was born
17 June 2019   94

The Chinese mining company Bitmain sued three of its former employees who allegedly violated the contract to refuse competition. This is reported by Coindesk.

Currently, there are six lawsuits in court: three from the co-founders of the Poolin pool, claiming that they are no longer bound by the terms of the contract with the company, and three from Bitmain, insisting on the opposite.

The operational director of Poolin Fa Zhu in 2015 reported that he and his colleagues suggested Bitmain to open a new mining pool, BTC.com, in parallel with Antpool, which was already available at that time. Bitmain did not support the initiative, and then the three decided to launch it with their own money. Today BTC.com is the world's largest bitcoin mining pool in terms of hash rates.

Poolin was founded in November 2017 for the mining of a variety of cryptocurrencies and is currently ranked seventh among the largest mining pools of Bitcoin. Poolin was involved in Bitcoin mining in July 2018 and has since received 26,825 BTC or $ 220 million at the current exchange rate.

Under the terms of the waiver agreement, Bitmain had to pay the Poolin CEO Zhibiao Pan $ 2,780 a month for two years for refusing to open a bitcoin mining pool. The amount of compensation for the two other business participants is not specified.

Now the company is trying to recover all payments from the former employee, and also asks to impose a fine in the amount of $ 667,000 for violating the terms of the contract. In addition, Bitmain lawyers argue that all Bitcoins mined by Poolin are income derived from the failure to comply with the terms of the agreement, the percentage of which is also subject to recovery. The total amount of the claim is $ 4.3 million.

Poolin lawyers, in turn, state that Bitmain itself violated the terms of the agreement when it failed to pay Pan in due time, and the 26 825 BTC obtained by the defendant cannot be considered a direct loss for BTC.com, since there are many pools in the Bitcoin network, everything of which were able to get this cryptocurrency.