Wacoon CEO and Accomplice Arrested in 500 Billion Won Fraud and Quasi-Receipt Scheme

Wacoon CEO and Accomplice Arrested in 500 Billion Won Fraud and Quasi-Receipt Scheme

Prosecutors Arrest Wacoon Representative and Accomplice in Massive Fraud and Quasi-Receipt Scheme Prosecutors have arrested and charged Wacoon representative Byun Mo and his accomplice Yeom Mo on charges of fraud and quasi-receipt totaling over 500 billion won (approximately $420 million). According to Yonhap News, Wacoon allegedly raised investment funds by enticing investors with promises of high returns on virtual assets or cash deposits. However, the company has not paid out principal or interest to investors since June 2022, leaving over 500 victims without their funds. The police initiated an investigation into Wacoon in September 2022 after receiving numerous complaints from investors. The investigation culminated in the arrest of Byun Mo and Yeom Mo. Modus Operandi Wacoon is accused of using a Ponzi scheme to lure investors. The company allegedly promised high returns on investments in virtual assets, but in reality, these investments were not made. Instead, Wacoon used the funds from new investors to pay returns to earlier investors, creating the illusion of profitability. In addition to the fraud charges, Wacoon is also facing charges of quasi-receipt. Quasi-receipt refers to the issuance of receipts for goods or services that were not actually delivered. In this case, Wacoon allegedly issued receipts for investments that were not made, thereby artificially inflating the company's assets. Ongoing Investigation The investigation into Wacoon is ongoing, and prosecutors are expected to continue their probe into the company's financial activities and the extent of the fraud. The authorities are also working to recover the lost funds for the victims.