Home Crypto Currency Market Two Fraudulent Crypto Schemes Taken Down In Asia

Two Fraudulent Crypto Schemes Taken Down In Asia


People interested in economies and how they function – which should be literally everybody in nations with highly-developed economies, if not the entirety of planet Earth’s population, at large – largely understand that too much government regulation or meddling in business as usual can actually tamper the performance of not only individual businesses directly affected by such happenings, but the entirety of markets.

However, there must be some, at least, government regulation to prevent widespread crime, misrepresentation, and fraud from taking place, which is something everyone – or, at least everyone – recognizes as true.

The world of cryptocurrencies has piqued much interest from government authorities from around the world. Because they’re so new, it’s difficult to understand exactly how they work, as there currently aren’t any frameworks as thorough or rigid as the Securities and Exchange Commission’s in the United States, for example.

While some cryptocurrencies are certainly great for the world, seeing as they are able to put the ownership of money back into the hands of individuals, rather than governments that potentially couldn’t be trusted as well as society at large, others are nothing more than cleverly-disguised scams and frauds, with their perpetrators hoping to strike it rich in the interim, sometimes without even getting caught.

In Asia, South Korea and China have effectively taken down two large, organized groups that encouraged others to invest in cryptocurrencies in true pyramid-scheme format, though countless consumers weren’t aware of such scams.

Because some cryptos and digital currencies can’t be traced very well, it’s often difficult to figure out who, exactly, is atop of black market, illegal, fraudulent operations that involve various crimes, and ultimately someone at the top trying to get away from law enforcement authorities undetected.

Hong Kong Yangli Datang International Group is the name of the Ponzi scheme that effectively stole $13 million from the pockets of hopeful investors. Several criminals had gotten together to create the fictional company mentioned above, and hired a white man to play the part of its chief executive officer, Evgeny Subbotin, in an attempt to boost credibility.

In just 18 days, those fraudsters had effectively raked in some $13 million, affecting people from all throughout the country of China.

The second incident, the one that took place in South Korea, was perpetrated by an unnamed couple that raked in some $20 million from unsuspecting, innocent persons around the web.