The Gyeonggi Nambu Police Agency on May 04, investigated dozens of crypto exchanges in the country and seized their cash deposits.
While making an announcement, the South Korean Police stated that it invaded 22 exchanges, included one headquarter in Southern Seoul. During the investigation, the police seized $214 million left in the exchange’s account.
The raid was conducted to find out whether the CEO, surnamed Lee, ran a fraud scheme or not. As per the allegation, he violated the act of regulation in the country by raising funds for the business, without getting permission for it.
It has been reported that since August 2020, Lee has defrauded 40,000 customers on the crypto exchanges and raised around $1.50 billion from them. Lee has asked the customer to open an account on the exchange for $5327.
Further, it has been stated that the traders were lured into a fraudulent scheme by Lee and his accomplices. The investors were promised a three times big return on their investments. However, some of the investors did get a huge return, but that was paid using other investor’s deposited money.
On April 15, the court released its decision to freeze the sum total of $214 million left in the exchange to restrict its usage in any illegal proceedings, till the investigation is on.
Since February 2021, the Korean authorities have been investigating the case and currently, they have not shared any details about it.
Amid the growing crypto trading in the country, South Korea has announced to strengthen its crypto regulations to monitor the activities of crypto exchanges.