Police launched an investigation after a complaint alleged an investment scam took place within a volunteer group that had even received a National Assembly commendation for its service work.
According to the Incheon Metropolitan Police Agency's Anti-Corruption and Economic Crime Investigation Unit on Apr. 6, a group known as a volunteer organization, identified as Group A, was accused of fraud and other charges.
Victims said they suffered financial losses after a ring posing as a volunteer group carried out a "Ponzi scheme (multi-level financial fraud)." The group drew extensive media coverage for supporting wildfire recovery, volunteering at facilities for people with disabilities, and aiding vulnerable groups, and it was said to have even received an award in the social service category from the National Assembly.
According to the victims, they leveraged their external credibility to solicit investments under the pretext of AI industry and coin projects. They then pushed users to install a dedicated application (app) and recruited members through a multi-level structure.
In the early stages of fundraising, deposits and withdrawals of investment funds were unrestricted, but on the scheduled listing date of the coin, a sudden notice said "normal withdrawals are difficult." Actual withdrawals were then blocked.
More than 1,000 people are believed to have been defrauded by Group A, and the damage is estimated to exceed 50 billion won.
Police plan to designate a lead investigative agency and begin a concentrated probe, taking into account the number of complaints filed.