Company A promotes that it can generate consistent revenue through 'legal' arbitrage (profit trading) using artificial intelligence (AI) robots in cryptocurrency exchanges. It explains that investors can choose products with varying risk levels and durations as they wish. It also boasts on its website of having received official investment from the Abu Dhabi Investment Authority.
Company B, referred to as the Blockchain Foundation, claimed to sell cryptocurrency at a discount compared to its actual price through an online messenger room, stating that the coins were from the top 80 market capitalization. However, the coins that investors actually received were different coins marked with a dollar ($) sign in front of their names. The seller asserts that this coin is also officially listed on foreign cryptocurrency exchanges and will be linked to the advertised coin.
Recently, Ponzi schemes (multilevel financial scams) utilizing cryptocurrencies have become rampant, taking advantage of the economic downturn. Cryptocurrency fraudsters across the internet and social media are targeting middle-aged individuals unfamiliar with cryptocurrencies by using advanced technologies and specialized terminology such as artificial intelligence (AI), quantitative investment, and arbitrage (profit trading), raising the need for particular caution.
On the 19th, the Financial Supervisory Service (FSS) revealed that it requested the Korean National Police Agency to investigate Quantvine earlier this month. As of 3 p.m. the day before, the number of members in the Quantvine victims' group cafe surged from 4,000 last week to over 5,700, and a petition requesting an investigation into Quantvine was also posted on the National Assembly's electronic petition site. The FSS noted that there are still numerous companies similar to Quantvine and is continuously monitoring them, stating that if additional damage occurs, the consumer alert level could be raised from the current 'caution' level to 'warning.'
In fact, several cases of Ponzi schemes similar to Quantvine have been shared in the victims' group cafe. Investors are currently unable to recover their investments. A common feature of such companies is that they introduce themselves as 'technology companies with headquarters overseas,' claiming that there exists a 'domestic official site.' Additionally, they use various technologies such as AI or quantitative investment to guarantee a certain revenue with a small investment, introducing major cryptocurrency exchanges like Binance or Coinbase as partner companies.
In particular, these companies explain that they distribute a portion of the investment as dividends at the beginning to attract numerous investors and provide additional rewards for referring (referral) codes to bring in acquaintances. For this reason, investors who have actually received dividends introduce the scheme to family and friends, resulting in a rapid increase in the number of victims.
Some investors who noticed this attempt to recover their investments are faced with systems that only allow them to withdraw a very small portion of their investment or freeze withdrawals and delete the application. In the case of Quantvine, which has currently closed its site, it also demanded deposits, claiming that withdrawals would be possible if investors recharged their investments before closing.
Industry insiders in the cryptocurrency sector emphasize that the credibility of cryptocurrencies is diminished due to fraudulent companies pretending to offer cryptocurrency investments, urging consumer caution. They state that with a little careful observation, problematic sites can be identified. To operate legally in the domestic cryptocurrency industry, businesses must comply with laws regarding the reporting and use of specific financial transaction information. The FSS advises that unreported businesses have a higher likelihood of investment fraud and encourages checking the reporting status on the Financial Intelligence Unit's homepage.
Moreover, terms like 'guaranteed revenue' and 'principal protection' are virtually impossible when considering the volatility of the cryptocurrency market. Legitimate investment firms always specify the risk of principal loss, and systems offering excessive rewards for recruiting new members are typical features of Ponzi schemes, according to industry explanations. Kim Gyu-jin, CEO of Tiger Research, noted, 'Investors must go through an independent information verification process before investing,' adding that 'cryptocurrency investment requires a cautious approach based on sufficient understanding and research.'