Ethereum Wallet Under Investigation For A Crypto Fraud Of 50 Billion Won

  • Ethereum wallet, also popular as an ETH Wallet, is under police investigation for cryptocurrency fraud of up to 100 billion won.
  • Sources say that a man named ‘Dakdan Shin Sensei’ ran the racket and duped its members of billions of money.
  • Cryptocurrency scams take place via online portals where users have less knowledge and awareness about the safety of their wallets.

Ethereum wallet, popularly known as an ETH Wallet, is under police investigation for cryptocurrency fraud duping south Korean investors of 50 billion won. Approximately, 20,000 of its members, have not withdrawn money for over a year. 

Fake Ethereum Wallet Fraud

Sources say that a man named ‘Dakdan Shin Sensei’ ran the racket and duped investors of billions. He orchestrated a proposal where he assured investors that if they deposit Ethereum in ETH Wallet, they would receive a huge amount of interest and reap dividends. And promised to further passing benefits on to everyone.  Reports claim that police have also freeze certain accounts of members after taking information from the regulatory agencies. The accused used the letter ‘A’ under his name, manipulated account holders’ Ethereum amounts in various proportions. Only 1/4th of the total victims have come forward for a class action lawsuit against Sensei who has extracted more than 50 billion won. There are loads of cases that are currently under investigation for fraud and crimes of various denominations. 

This is Not the First Cryptocurrency Scam in South Korea

Well, this is not the first time; South Korea’s cryptocurrency investors have experienced a scam. In the month of April 2019, almost 56000 investors deceived. The total Scam amounted to 18.5 million dollars. The company was an online shopping site and a bitcoin firm. Apparently, they created this online website, where users asked for a membership fee of 333000 wons. And in case they wanted the premium the fees would be 999000 wons.
The CEO of the accused Ponzi scheme had earned a total of 21.2 million wons by deceiving the investors and their token sales. They used a computer, where they concealed all the information and hid it inside an employee’s car. However, the police arrested all the accused scammers. 

Steps To Keep In Mind To Avoid Crypto Fraud

One should always use wallets from known sources and make sure it is a cold wallet. There should be an adequate backup for the private keys of your digital currencies. Further, one should keep in mind to enable 2 factor/step authentication for their account to minimize fraud of any kind. It is not advisable to keep long passwords in any account but research shows that those having long passwords are less vulnerable to theft. Remember to keep your password long and store it in a safe place for future use. One must make sure that they do not select the ‘keep me signed in’ option while leaving a crypto domain, to avoid compromising of their account.

Cryptocurrency scams take place via online portals where users have less knowledge and awareness about the safety of their wallets. According to a statistical report, there was a commitment of 3.38 trillion won fraud in the year 2017 itself.  

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