[Interview with Attorney Pureun “Ian” Hong] Elderly Victims Increasingly Affected by Coin Fraud; Seek Expert Help if You Suspect Anything
"As the virtual asset market grows, related crimes are also on the rise. Criminal organizations are becoming more sophisticated, and to help victims, lawyers must continually upgrade their expertise."
Attorney Pureun “Ian” Hong, the managing partner of Decent Law Firm (10th Bar Exam), is a specialist in virtual asset cases, including the fraud case involving the virtual asset deposit service company, Haru Invest. Hong's interest in virtual assets and blockchain stems from his university major. A graduate of the Korea National University of Arts' School of Drama, Hong developed an interest in non-fungible tokens (NFTs) as digital art even before Bitcoin became widely known.
Attorney Hong categorizes virtual asset-related crimes into three main types: pyramid schemes, crimes involving the solicitation of investment funds, and crimes utilizing coins.
Pyramid scheme-type fraud typically involves soliciting investments from the public under the guise of coins or other assets, even though there is no legitimate business venture, eventually leading to insolvency. Hong emphasized the need for caution, as the larger a coin-based business becomes, the higher the risk of fraud. He explained that even if a business appears legitimate at first, it can ultimately become a fraud if the business fails and enters a state of insolvency.
"The virtual asset market often sees tens of thousands of people flocking to certain projects, lured by the hope of making a large profit with early investments," Hong said. "When these investments grow large and the business fails, investors can find themselves in a very difficult position. I am currently handling several pyramid scheme cases that promise daily returns of 2% along with coin rewards."
The Haru Invest case, in which Hong represented the victims, is a representative example of a crime involving the solicitation of investment funds for a project. This criminal organization defrauded customers of approximately 14 trillion KRW in coins. "In the Haru Invest case, although there was a legitimate business item, the methods of fund solicitation and management were abnormal," he explained. "Fraudulent practices were used during the management process, making it similar to corruption or white-collar crimes."
In addition to these cases, Hong also investigates incidents where virtual assets are used as tools for general crimes, such as drug trafficking or money laundering for criminal proceeds, including voice phishing.
Hong noted a noticeable increase in the number of elderly victims in virtual asset-related cases. He analyzed that the elderly, who generally have less understanding of virtual assets, often suffer significant losses from even basic fraud schemes because they are easily lured by promises of high returns.
He advised, "The general public should also approach virtual assets with a thorough understanding, as they are much more complex than the traditional financial system. Even after investing, it's crucial to continuously verify how the funds are being used. If there's any suspicion of fraud, it's important to consult with specialized attorneys."
"I am committed to tackling challenging cases to build my skills and achieve my goals," Hong concluded. "I will continue to study a wide range of fields, deepening my expertise and acquiring diverse knowledge."
