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![[Interview with Attorney Pureun “Ian” Hong] Elderly Victims Increasingly Affected by Coin Fraud; Seek Expert Help if You Suspect Anything](/@resource/images/sub/nodata2.png?t=20240927)
Media Coverage[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."
2024-04-28 Financial News -
Media Coverage
From voice phishing to coin-related crimes, financial fraud victims on the rise
Despite the economic downturn, the investment frenzy in virtual assets, stocks, and similar ventures continues, leading to an increase in cybercrimes using these investments as bait. Financial fraud schemes, once dominated by 'voice phishing,' have shifted to cyber environments, such as 'investment chat rooms,' resulting in a growing number of victims. (omitted) The surge in prices of virtual assets like Bitcoin and the skyrocketing value of IPO stocks, where quick investments can yield substantial returns, have been identified as reasons for the increase in cyber fraud crimes driven by a get-rich-quick mentality. Attorney Pureun “Ian” Hong from Decent Law Firm explained, "Many people fall victim to fraud after being influenced by stories of acquaintances who made large sums through actual coin investments. In some cases, this type of fraud spreads like a pyramid scheme, creating collective victims, and at times, victims themselves turn into perpetrators, requiring caution." Initially, the trend was to simply operate investment chat rooms and demand fees for investment guidance, but the scale of fraud has since grown with the creation of sophisticated fake investment applications. Furthermore, recently, small crime syndicates have been operating in a decentralized network structure, where different groups specialize in victim recruitment, money laundering, distribution of ghost accounts, and website development. This decentralized structure makes it easier for smaller groups to sever ties with the larger organization if they are caught, making it difficult for law enforcement to apprehend all the culprits involved.
2024-04-23 Seoul Economy -
Media Coverage
Key Focus of the Terra · Luna Trial: Whether They Qualify as Securities
The fallen 'Korean Elon Musk' is expected to return to Korea. This refers to Kwon Do-hyung, CEO of Terraform Labs, the developer of Terra and Luna coins. His extradition to Korea is expected to impact the ongoing trial. On the 7th, the Podgorica High Court in Montenegro overturned the previous decision to extradite Kwon to the U.S. and ruled for his extradition to Korea. (omitted) One of the key issues anticipated to be addressed during the trial following Kwon's extradition is whether Terra and Luna can be classified as securities. The determination of whether virtual assets are securities will affect the severity of the punishment, as recognizing them as securities could lead to charges under the Capital Markets Act. (omitted) The legal community expects that the determination of Terra and Luna's securities status will have an impact on other virtual assets. Hyeonsu "Elliot" Jin, an attorney at Decent Law Firm, specializing in virtual assets, stated, "It is highly likely that Kwon will be found guilty of fraud under the Special Act on Aggravated Punishment for Specific Economic Crimes. The key issue is whether there was a violation of the Capital Markets Act,' adding, 'Regardless of the outcome of the punishment, this could serve as a starting point for determining the securities status of virtual assets."
2024-03-18 Ilyosisa -
Media Coverage HOT
Foreign Coin Fraud Victims Struggle with Legal Challenges
More than 10,000 foreign investors are struggling with legal action after Haru Invest, a company that raised approximately 1.4 trillion KRW (around $1.1 billion USD) worth of cryptocurrency from numerous investors, suddenly suspended withdrawals. With foreign victims reportedly double the number of domestic ones, attention is focused on how the South Korean judicial authorities will proceed with the investigation. As of the 13th, according to representatives of foreign victims, out of the 16,347 individuals who entrusted their coins to Haru Invest, 11,313 are foreigners, with their damages estimated at over 1 trillion KRW. The victims hail from various countries, including the U.S., India, France, Finland, Australia, Iceland, Norway, Latvia, Ireland, and Switzerland. Law firms representing just a small fraction of these foreign victims have so far reported damages amounting to approximately 40 billion KRW. (omitted) Since Haru Invest is headquartered in South Korea and operated by offering returns to investors based on the condition of coin deposits, without involving any foreign cryptocurrency exchanges, any legal response must be pursued within South Korea. Hyeonsu “Elliot” Jin, Managing partner at Decent Law Firm, which represents some of the foreign victims, stated, “The Haru Invest case is not just a simple cryptocurrency scam in Korea, but a global issue with victims scattered worldwide. To restore the confidence of foreign investors, the South Korean judicial system must take active measures.”
2024-03-13 Seoul Economy -
Media Coverage
‘1.4 Trillion Won Cryptocurrency Scam’ Haru Invest Evades Capital Erosion by Embezzling Digital Assets
The Haru Invest scam, which swindled 1.4 trillion won worth of digital assets from customers, appears to have been initiated to save the company from a state of capital erosion. When the 'algorithm trading' method, which promised annual returns of 12-16% with no risk, failed to deliver, the company even created fabricated profit verification posts to cover up the issue. According to sources from the cryptocurrency industry and legal circles on the 11th, the Seoul Southern District Prosecutor's Office's Joint Investigation Team on Cryptocurrency Crimes indicted and detained A and B, co-representatives of Blockcrafters, which operated Haru Invest, on charges of fraud under the Specific Economic Crimes Aggravated Punishment Act. The Chief Operating Officer (COO), C, was indicted without detention on similar charges. They are accused of embezzling 1.39 trillion won worth of digital assets from 16,347 investors. (omitted) The attorneys representing the victims, Pureun “Ian” Hong and Hyeonsu “Elliot” Jin from Discent Law Firm, stated, 'It has become evident during the investigation that Haru Invest’s business deteriorated into a 'Ponzi scheme'. The truth must be revealed in court.'
2024-03-11 biz.chosun -
Media Coverage
Details of the Indictment Against Haru Invest Executives for the '1 Trillion KRW Coin Exit Scam'
Prosecutors have specified in the indictment against Haru Invest executives, who deceived customers into depositing virtual assets worth 1.4 trillion KRW and then prohibited withdrawals, that they entrusted the management of 1.31 trillion KRW worth of virtual assets to an unqualified operator who did not meet the selection standards. According to the indictment filed on the 10th against the joint CEOs of Haru Invest, Mr. A (44) and Mr. B (40), and the business director Mr. C (40), they began entrusting the management of 90 Bitcoins in August 2020 to Mr. D, an unqualified operator who did not meet the criteria for selecting external asset managers. (omitted) The Virtual Asset Crime Joint Investigation Unit of the Seoul Southern District Prosecutors' Office (headed by Chief Prosecutor Lee Jeong-ryeol) filed detention indictments against these individuals on the 22nd and indicted the company's Chief Operating Officer, Mr. E (38), without detention. Hyeonsu “Elliot” Jin and Pureun “Ian” Hong, Managing partner at Decent Law Firm, representing the victims, stated, "This case is a global fraud scheme, with victims from more than 20 different nationalities. Their crimes must be thoroughly revealed during the trial process."
2024-03-10 Financial News
