Cryptocurrencies transformed the way we glance at transactions, but against the grain, they have also encouraged cybercriminals to lead some massive frauds over the past few years. While the cleverest minds have developed some beyond-belief organizations upheld by the might of blockchain and cryptocurrencies, wicked minds have also pounced on the furor, defrauding innocent investors in complex scams.
Do you know about the Shinil Group scam that took place last month, in which investors were tricked into investing in their cryptocurrency?
The Shinil Group Scam
The most recent attack was reported by JoongAng Daily on July 31st. The South Korean government is certain of the fact that the event is likely a crypto investment scam and are at this time investigating the same. It was discovered that the scam was set in motion by a Shinil Group from Seoul.
Earlier in July, Shinil Group advertised that it had located a shielded cruiser that belonged to Russia, the ‘Dmitri Donskoi.’ This cruiser had sunk 113 years ago (as per a Reuters report). Shinil claimed that the ship was carrying gold valued at 150 trillion won ($131 billion USD).
Shinil created its own cryptocurrency and to attract investors, it designed its strategy around this sunken ship’s gold. Shinil Group ostensibly promised that it would reimburse its investors with the gold from the ship. Since its launch, the company apparently lured 60 billion won, or $53.7 billion USD, as an investment from approximately 100,000 investors.
No Gold Found Anywhere
The district police of Seoul put a travel ban on the traveling of the CEO of Shinil Group, Choi Yong-Seok, and are going to interrogate him and the other parties involved. However, Yong has already admitted that Shinil Group
