South Korean Crypto Firm Under Investigation for Allegedly Duping Investors
South Korean police in Seoul’s Jongno District have announced an investigation into a company linked to a gaming coin. The company, identified only as “S,” is accused of tricking investors in their late 50s and 60s by offering insider crypto tips. According to reports, company officials claimed they could provide discounted prices for an altcoin called Ludena Protocol (LDN) while it was listed on the Coinone exchange. The officials allegedly targeted retirees and convinced them to pay a joining fee and invest significant amounts of money in LDN-associated play-to-earn gaming platforms. It is estimated that the group may have amassed $7.5 million from their victims.
Details of the Alleged Fraud
The investigation revealed that the company officials promised investors CEO-level financial secrets and access to a pre-sale event on the LDN-associated gaming platform. To gain access to these benefits, victims were required to pay a joining fee of $7,500. Once they had paid the fee, they were encouraged to invest over $75,000 on the platform. However, after investing their money, victims were unable to retrieve it.
The Scale of the Scam
The police believe that the company employed a team of approximately 47 people who specifically targeted individuals who had recently retired or were about to retire. It is estimated that the group may have contacted around 200 people, with at least 50 individuals falling victim to the scam. In total, it is believed that the group may have collected $7.5 million from their victims.
The Ludena Protocol and its Delisting
Ludena Protocol (LDN) is an altcoin associated with a gaming platform that envisions a creative metaverse with Play-to-Earn games, an NFT marketplace, and a staking platform. The LDN token experienced a spike in prices at the end of 2022 but subsequently saw its value plummet in early 2023. The token was delisted from the Coinone exchange for unrelated reasons. CoinMarketCap noted that it had not verified the project’s circulating supply and reported a self-reported market cap of $0.00.
The Alleged Fraudsters’ Promises
The fraudsters reportedly told potential investors that LDN coin was “the next WEMIX,” a successful South Korean crypto and gaming coin listed on multiple trading platforms. They claimed that investors could earn profits of 300-500% within just three months. Additionally, they assured investors that their coins would be locked for up to 120 days after the pre-sale event, but when the coin’s value fell rapidly, the suspects extended the lock period for another 30 days and then disappeared.
Hot Take: South Korean Crypto Consultancy Firm Accused of Defrauding Elderly Investors
A South Korean crypto consultancy firm is currently under investigation for allegedly duping elderly investors out of $7.5 million. The company officials are accused of tricking retirees into paying a joining fee and investing significant amounts of money in Ludena Protocol (LDN)-associated gaming platforms. Police believe that the group may have targeted around 200 people, with at least 50 falling victim to the scam. This case highlights the importance of conducting thorough research and due diligence before making any investment decisions, especially in the cryptocurrency industry where scams are prevalent. Investors should be cautious of promises of high returns and should only invest what they can afford to lose.
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