Bitcoin-pyramid in South Korea attracted $ 20 billion

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Two suspects in South Korea used the scheme of the financial pyramid, based on bitcoin, to attract $ 20 billion from investors from all over the country.

The pyramid has been working since 2015

On April 19, the district judge of Incheon appointed fines for the organizers of the pyramid: $ 15 million and $ 8 million, respectively, says Ryonhap.

The scheme was launched in 2015, and at first, 26 billion won ($ 24 million) were raised from investors. Later, a network (multilevel) program was launched. Investors were promised a profit from investing money in bitcoin.

According to the judge, “such schemes carry a risk for the socio-economic order since they reserve a huge number of victims.” The judge also said that the fines are proportional to the number of funds received by the organizers of the pyramid from investors.

Fighting the network in China

At the same time, neighbouring China is also taking measures to combat network (multi-level) programs, which are covered by investing in bitcoin. On Wednesday, Chinese law enforcement agencies detained organizers of the financial pyramid linked to the crypto-currencies, which managed to raise $ 13 million from 13,000 scheme participants.

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