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The Seoul Southern District Prosecutor’s Workplace has launched an investigation into three instances of alleged cryptocurrency fraud, based on a report by Hankyung on July 27, 2023. The newly shaped joint investigation crew for cryptocurrency crimes, which was established on July 26, 2023, is spearheading the investigation.
The instances beneath investigation contain Delio and Haru Make investments, Pica Challenge, and WeMade, all of that are suspected of fraudulent actions associated to their administration. The joint investigation crew has taken over these instances from the Monetary Investigation 1 Division of the Southern District Prosecutor’s Workplace.
WeMade, the issuer of the digital asset WEMIX, has been beneath scrutiny since 2021 as a consequence of varied controversies. The corporate had beforehand confronted criticism for liquidating KRW 225.5 billion value of WEMIX with out notifying customers between November 2020 and January 2022. This led to a big controversy and highlighted the significance of regulatory disclosure within the digital asset market.
Haru Make investments, a Singapore-based crypto funding supervisor, confronted a disaster when CEO Hugo Lee needed to apologize to its members for considerations arising from a current incident. The corporate needed to halt curiosity funds to all customers and cooperate totally with authorities in response to authorized actions initiated in opposition to it. The corporate had beforehand suspended withdrawals and deposits on the platform as a consequence of elevated market volatility.
Delio, considered one of South Korea’s largest cryptocurrency lending corporations, additionally confronted a disaster when it needed to halt curiosity funds to customers. The corporate’s operations had been doubtful after prosecutors raided the corporate following a fraud lawsuit filed by Delio purchasers. The corporate had beforehand suspended withdrawals and deposits on the platform, and it was reported that Delio withdrew KRW 9.24 billion (US$7.2 million) value of its crypto holdings to a few nameless exterior wallets not disclosed by the corporate or the executives.
The investigation crew, which incorporates a lot of the prosecutors from the Monetary Investigation 1 Division, together with Deputy Chief Prosecutor Gino Sung, who beforehand led the investigation into cryptocurrency malpractices, is anticipated to expedite the processing of those instances.
As well as, the case involving unbiased lawmaker Kim Nam-guk’s alleged large-scale coin holdings continues to be investigated by the Prison 6 Division. Nevertheless, as a few of Kim’s allegations are linked to WeMade’s suspected unlawful market-making, a joint investigation with the joint investigation crew appears inevitable.
Picture supply: Shutterstock
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