Byun Young-oh, CEO of South Korean firm Wacon, has been arrested over allegations of running a Ponzi scheme that defrauded over 500 investors of $366 million.
Details of the Arrest
Byun Young-oh, the CEO of Wacon, was arrested following warrants issued by the Seoul Central District Court on August 16. The company’s Vice Chairman Yoem and two other accomplices were also arrested and are currently awaiting trial.
Company's Scheme
Wacon, with over 12,000 members, is suspected of operating a digital Ponzi scheme promoting unregistered virtual currency staking products. The company promised high returns of up to 50%, attracting investors through a multi-level marketing strategy. However, many investors suffered losses after the company defaulted on payouts in June 2023.
Denial of Allegations
Byun Young-oh denied all charges, stating in November 2023 that he was unfamiliar with terms like 'multi-level marketing'. Nevertheless, the investigation is ongoing, with the police aiming to identify all potential suspects linked to the case.
The story of Wacon's CEO arrest and ongoing investigation continues to unfold, gaining considerable attention in South Korea’s media. Questions regarding the involvement and roles of other company officials remain.
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