$250 Million Ethereum Mining Scam – Korean Prosecutors File Charges
Korean prosecutors have reportedly filed charges against several people linked with Mining Max, US-based cryptocurrency mining company allegedly supporting a significant cryptocurrency mining scam.
According to a report by Korean book Yonhap, police in the Incheon District Prosecutors’ Office have whined 21 people suspected of being connected with Mining Max LLC, a US-based business, on charges of fraud and supposedly soliciting 270 billion won (approx. $250 million) from investors throughout the planet for an Ethereum mining surgery promising substantial yields. Others are indicted without detention for embezzlement and other fees.
“All those mining channels are constructed and kept at our Internet Data Centers (IDC) in Korea,” the company maintains on its own site.
The supposedly sweeping scam also involves seven additional Korean and overseas nationals, currently on Interpol’s wanted list, of being connected with Mining Max and blotching results that supposed to mine more Ethereum compared to surgery actually did. The scam unraveled when the company wasn’t longer able to make sufficient returns from the ‘mining’ operation, presumably in its own dividends to new investors.
Altogether, prosecutors allege the suspects pocketed a substantial portion of the $250 million, gathered from approximately 18,000 investors in 54 countries between September last year and October annually.
Authorities further claimed that Mining Max simply spent 75 billion won, approximately $70 million of the $250 million, for its mining performance. The organization’s executives are also suspected of getting tucked away 100 billion won, approx. $92 million, in offshore accounts. Further, ‘top performing’ investors were supposedly paid around 4 billion won (approx. $3,7 million) alongside luxury perks in Rolex watches and Mercedes Benz cars, Yonhap’s record included.
Prosecutors estimate that the scam sees roughly 14,000 investors in Korea, 2,600 in the USA, 600 from China and 700 in different countries, including Japan.