Montenegrin Authorities Apprehend Co-founder of FutureNet Crypto Fraud Scheme
Authorities in Montenegro have apprehended Roman Ziemian, one of the co-founders of the alleged crypto fraud scheme FutureNet. The scheme is accused of defrauding investors of approximately $21 million. Ziemian was arrested in the capital city of Podgorica, where he was reportedly living under a false identity. The Police Directorate released a statement regarding his arrest, noting that Ziemian is wanted by both South Korean and Polish authorities on charges of fraud, money laundering, and theft.
Ziemian Facing Possible Life Sentence if Convicted
If convicted, the South Korean government has indicated that Ziemian could face a life sentence. Following his arrest, Montenegrin police seized several items and devices believed to be linked to his alleged criminal activities. Ziemian is set to appear before a judge at Podgorica’s High Court to determine whether he will be extradited to face charges in other countries.
FutureNet’s Troubled History
- FutureNet, co-founded by Ziemian and Stephan Morgenstern in 2018, promoted itself as a multilevel marketing platform with an associated cryptocurrency, FuturoCoin (FTO).
- The token’s value has since plummeted, indicating the fraudulent nature of the enterprise.
- In March 2019, Poland’s UOKiK issued a warning about FutureNet, labeling it as a potential pyramid scheme.
- The scheme involved selling “participation packages” with promises of profits for recruiting new participants.
- An investigation was launched in South Korea in 2020 after complaints from 950 individuals who claimed significant financial losses.
Similarities with Do Kwon’s Case
Ziemian’s case bears similarities to that of Do Kwon, co-founder of Terraform Labs, who is also in custody in Montenegro facing similar charges. The Supreme State Prosecutor’s Office filed a request for the protection of legality regarding Kwon’s extradition to South Korea. The court’s decision postpones the execution of the extradition order, allowing for further review of the case.
Legal Battles and Extradition Requests
- South Korea and the U.S. are both seeking to try Kwon for charges related to the Terra/LUNA ecosystem’s $40 billion collapse in May 2022.
- Competing extradition requests have been issued to Montenegro, where Kwon has been in custody since March 2023.
- Kwon was arrested for using a fake Costa Rican passport while attempting to travel to Dubai.
Hot Take: International Efforts to Combat Crypto Fraud
It is essential to see international cooperation in dealing with crypto fraud cases like those involving FutureNet and Terraform Labs. The apprehension of key figures in these schemes demonstrates a global commitment to holding perpetrators accountable for their actions. As the cryptocurrency space evolves, regulatory authorities must remain vigilant to protect investors and ensure the integrity of the market.
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