The virtual asset platform 'Quantvine' is facing growing suspicions of engaging in Ponzi schemes (multi-level financial fraud). Quantvine claims to guarantee a daily revenue return of 2% through virtual asset arbitrage using artificial intelligence (AI). When converted to an annual compound interest rate, this amounts to approximately 137,600%. The virtual asset industry regards this revenue structure as impossible, but posts claiming to generate actual revenue have spread on social media (SNS), catching the attention of the general public. Financial authorities are considering issuing a consumer alert, judging that the reality of Quantvine is unclear.
According to the virtual asset industry on the 10th, Upbit, the country's largest virtual asset exchange, announced on the 4th its plans to restrict withdrawals to addresses associated with Quantvine's website. Upbit has taken measures to ensure that withdrawal addresses identified as Quantvine are not registered in the withdrawal process for amounts under 1 million won. Other virtual asset exchanges, including Bithumb, Coinone, and Kobit, also announced similar measures on the 5th. All four major exchanges deemed there to be significant issues with Quantvine.
Upbit noted, 'We have received reports of illegal multi-level suspicions against Quantvine,' adding, 'Due to concerns over potential investor harm from similar reception schemes, we plan to restrict withdrawals related to Quantvine's website addresses until the facts are clearly established.' Bithumb, Coinone, and Kobit also stated concerns over Ponzi schemes regarding Quantvine. An official from the virtual asset industry stated, 'Just because we received a report from a customer does not mean we block withdrawals and deposits.' They explained that the decision was made after the relevant department conducted an investigation and considered various factors.
Quantvine promotes a guarantee of daily revenue returns of 1.8% to 2.1%. New customers using Quantvine can only invest between 100 and 300 Tether (USDT). USDT is a stablecoin pegged to the U.S. dollar, with 1 USDT equating to a value of 1 dollar. This means the maximum investment amount is 300 dollars.
Users of Quantvine generate revenue by pressing a button labeled 'quantification' displayed in the Quantvine application (app) five times a day. In this method, once the total investment (principal and interest) exceeds 500 dollars, they must withdraw any excess amount. Among investors, there are claims that by repeating withdrawals and reinvesting, one can earn between 500 and 800 dollars a month.
To increase revenue rates and the potential investment amount, members must recruit additional participants to raise their 'level.' This is done by encouraging acquaintances to join Quantvine. It resembles a well-known multi-level structure. By recruiting six members and advancing to 'Level 2,' the potential investment doubles to 2,000 dollars, with a revenue return of 2.5% daily. Recruiting up to 180 members allows maximum investment of 20,000 dollars, with a daily revenue return of 3%. Theoretically, one could earn 18,000 dollars (26 million won) a month.
However, no specific information is disclosed on how Quantvine guarantees such substantial revenue. Neither the domestic nor international websites of Quantvine, headquartered in San Francisco, California, provide any details about its revenue structure or management information. It has been confirmed that Quantvine is not registered for business in South Korea.
However, among investors, it is known that Quantvine claims to generate revenue through arbitrage based on differing virtual asset prices across exchanges. For instance, buying a virtual asset priced at 1,000 won on Exchange A and selling it at 1,100 won on Exchange B. There are transaction fees and potential price fluctuations in this process, but it is said that they conduct these transactions instantaneously using AI.
The virtual asset industry considers this revenue structure to be similar to a typical Ponzi scheme. In particular, using price differences between exchanges for arbitrage is akin to the case of Haruinvest, which is being prosecuted for allegedly embezzling 1.4 trillion won in virtual assets. Like Quantvine, Haruinvest attracted investors by claiming to generate revenue through 'algorithmic trading' leveraging price differences between exchanges.
The Financial Supervisory Service has also deemed Quantvine to pose regulatory risks and is preparing countermeasures. A financial authority official stated, 'There are concerns that Quantvine's reality is unclear and that its business model is fraudulent,' and added, 'We are contemplating measures to prevent damage based on officially verified facts.'