The cryptocurrency exchange V Global has been accused of defrauding investors in a class-action lawsuit filed in South Korea. There were 69,000 investors in the crypto exchange, the police say, and the damages amount to 3.8 trillion won.
Investees claim a cryptocurrency exchange defrauded them.
V Global, a cryptocurrency exchange in South Korea, has been accused of fraud worth $3.8 trillion won ($3.5 billion).
One hundred and thirty victims have joined a class-action suit. According to Daegeon, a law firm representing the victims, “the 130 victims decided to submit a joint complaint against three executives and employees, including the CEO of V Global, a cryptocurrency exchange, on June 4th.”
Local media reports that 69,000 people lost their investments with V Global, resulting in 3.8 trillion won in damage.
The lawyer at Daegeon, Han Sang-Joon, said that there were up to 30,000 victims who lost out on their money, amounting to between 600 billion and 1 trillion won in unclaimed funds. He did emphasize, however, that “it could have been bigger.” Defamation was alleged against Daegeon by V Global in April.
Between August last year and recently, V Global hosted briefings across the country promising investors they “would get back three times the investment in a short period of time” when they opened an account with the crypto exchange.
The victims also claimed that V Global divided investors into 7 levels and told them they would get paid each time they brought in a new member. A Ponzi scheme rapidly emerged at the crypto exchange, and investors soon realized their money invested in the process was being returned with new members’ money. Besides issuing its own token, V Global has also issued its own digital asset.
The police probe was launched following suspicions of illegal activity at V Global by the Gyeonggi Nambu Police Agency earlier this year. In light of the company holding investment briefing sessions across the country and recruiting investors from different places, the police are said to have expanded their investigation.
V Global forfeited 240 billion won after the police raided the cryptocurrency exchange. According to Nam Gu-jun, head of the National Investigation Headquarters, “We have so far booked 60 suspects and are analyzing the confiscated items before bringing charges.”