A website called MainEthernet is said to have been used by CEO Byun Young-oh and his partner, whose name is Yeom, to run a Ponzi scam.
About 12,000 people belong to Wakon. Some people think that the group is running a Ponzi scheme or a multi-level marketing business. The company that sells goods and services for holding virtual currencies on the mainnet is said to not have registered with the appropriate financial authorities. There are many of them all over South Korea.
Ethernet Fraud Scheme Exposed
The alleged scam, which allegedly raised $366 million, mostly aimed at older investors. A great deal of people were lured in by promises of significant returns, with interest rates on Ethereum deposits running from 45% to 50%.
People were interested in MainEthernet because it promised safe and profitable earnings and worked as a digital wallet service. People who bought things said they were having trouble getting their funds back by the middle of 2023, which made people a little concerned.
No matter the state of affairs were, Byun told investors that they would be fixed in a few months. Things were getting worse by November 2023, though, because MainEthernet’s office in Seoul took down its signs. This meant that the network could break down.
The office of the district prosecutor for Seoul has charged Byun and Yeom with theft. It looks like the case will go to court soon. Police are still looking into the case and want to find more victims and people who helped the criminals. But Byun has said that he is not part of a Ponzi scheme and does not understand anything about them. The investigation is still going on.
