-
ArticlesFour Changes When the Virtual Asset User Protection Act Takes Effect on July 19
Starting from July 19, 2024, the Act on the Protection of Virtual Asset Users and Other Matters (Virtual Asset User Protection Act) will come into effect. The Virtual Asset User Protection Act aims to protect the rights and interests of virtual asset users and establish a transparent and sound trading order in the virtual asset market by determining matters related to the protection of user assets and the regulation of unfair trading practices. So, what will change with the implementation of the Virtual Asset User Protection Act? You can find out through an article by Jin Hyeonsu, the Managing Partner of Decent Law Firm.
2024-06-06 Premium Contents -
Media Coverage
CEO of Golden Goal Indicted and Arrested for 'Coin Fraud' Using Famous Football Figures
A fraudster who deceived people into believing that a famous former soccer player was involved in a coin business, swindling billions of won, has been brought to trial. According to the legal community on the 9th, the Bucheon District Office of the Incheon District Prosecutors' Office (headed by Chief Prosecutor Oh Gi-chan) indicted Kim, the CEO of 'Golden Goal (GDG),' on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud) and other charges, on the 15th of last month. Kim is accused of defrauding 3.246 billion won by falsely claiming that the Golden Goal Coin would generate more than three times the profit within three months if listed on a major cryptocurrency exchange, and even if not, promising to refund the investment between 2021 and 2022. (omitted) The Golden Goal Coin, promoted as part of a soccer blockchain platform, was listed on the Singapore-based global exchange MEXC in June 2022, but was soon delisted. They also recruited soccer players as promotional models to attract investments. However, due to a lockup (restricted trading), investors were unable to recover their funds, leading to suspicions of it being a 'scam coin.' Attorney Pureun “Ian” Hong of Decent Law Firm, who represents the victims, stated, "This case involves a large-scale organized crime operation that utilized influencers, and it is clear that no legitimate business was being conducted while they collected money from numerous people. There are likely more accomplices involved, and thorough investigations should be conducted to recover criminal proceeds and compensate victims until the full extent of the damages is addressed."
2024-05-09 Financial News -
Media Coverage
'Retirement Fund Investment Scam' Targets Even Elderly with Dementia
As the country approaches becoming a 'super-aged society,' fraud crimes targeting the elderly are on the rise. It is particularly alarming that victims in their 60s and older are being targeted for their retirement funds. With most transactions like investing and shopping now conducted online, the elderly, who often lack financial and digital literacy, are increasingly falling prey to cyber fraud, prompting calls for solutions. (omitted) Experts attribute this phenomenon to the gap between improved digital accessibility and the lack of education on cyber fraud prevention. Pureun “Ian” Hong, managing partner at Decent Law Firm, which specializes in new types of fraud cases, explained, "In the current era of high inflation, many elderly people are inclined to invest their retirement savings to prepare for their later years, but without proper education, they easily fall for scams. As traditional offline channels transition to contactless methods, the elderly are left with no choice but to engage in cyber-based investments such as stocks or virtual assets, making it clear that societal measures are urgently needed."
2024-05-03 Seoul Economy -
Media Coverage
Advancement of investment fraud targeting the elderly
Investment fraud targeting the elderly is becoming more sophisticated. As digital accessibility among the elderly increases, their retirement funds are becoming increasingly vulnerable to new types of cyber fraud, leading to greater losses. According to police reports, the number of elderly victims aged 61 and older has risen from 34,359 in 2019 to 44,470 in 2023. In 2019, only 8.13% of scams targeting the elderly were cyber-related, but by 2023, this figure had increased to 25.71%. Experts warn that as the elderly engage more in online economic activities, their lower financial and digital literacy compared to other age groups makes them more susceptible to fraud by criminal groups. (omitted) Pureun “Ian” Hong, managing partner at Decent Law Firm, explained, "Seeing cases of people making profits from coins and stocks, many are jumping into investments. While younger people find it easy to purchase safer investments, like publicly traded coins, through apps, the elderly often struggle with this and end up being defrauded when they entrust others with the process." There has also been a consistent rise in cases where companies registered as similar investment advisory businesses evade the scrutiny of financial authorities and deceive vulnerable groups in the digital and financial space. While authorities are conducting large-scale crackdowns and a revision to the Capital Markets Act, which includes regulations on the scope and operation of similar investment advisory businesses, is set to take effect in July, the number of reported companies in this category reached 2,207 as of May 3, 2024, with 79 new registrations this year alone.
2024-05-03 Seoul Economy -
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