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- 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 Approximately, 20,000 of its members, have not withdrawn money for over a year.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
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.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
