The Seoul Central District Public Prosecutor’s Office’s Fifth Criminal Division has sent the case against Wacon’s CEO for running a crypto investment fraud scheme.

Byun Young-oh and his associates, according to the indictment, lured investors with promises of high interest rates on deposits in Ether. The funds were placed in MainEthernet wallets controlled by Young-oh’s group.

Investors were assured that the company had implemented a unique multi-stage interest payment method, allowing investors to expect returns of 45% to 50% per annum. Preliminary investigation data revealed that a significant number of defrauded investors were elderly people aged 60 and over, unfamiliar with the complexities and risks associated with investing in crypto assets. The prosecutor’s office regards this as an aggravating circumstance.

Prosecutors estimate that up to 12,000 people may have been involved in the crypto investment scam, with losses exceeding 500 billion won ($366 million).

Earlier, the Seoul Southern District Prosecutor’s Office added new evidence to the fraud case filed against Terraform Labs and its CEO Do Kwon, confirming the defendant’s criminal intent to steal customers’ funds.