South Korean Police Starts Investigating Bitcoin Ponzi Companies


Five Million Bitcoin Users by 2019

The law enforcement agencies in South Korean are preparing to launch a series of investigations into some alleged Bitcoin Ponzi companies.

According to Chosun Biz, a Korean daily, the Bank of Korea (BOK) has planned a combined operation with the police to destabilize the ongoing fraud operations in several Bitcoin programs and projects. The investigation is also likely to pin down altcoin-backed companies suspected of running pump-and-dump operations.

“According to our sources, there are 676 altcoins, including bitcoin, listed on,” the article claims. “However, only 309 of them have a market cap of USD$10,000, and others are almost worth nothing. Furthermore, there are 550 altcoins that have extremely low daily trading volumes.”

What’s worth noting among all these investigations is: South Korean still doesn’t have a law for the use of Bitcoin and similar digital currencies. Back in 2013, BOK had hoped to regulate these disruptive payment technologies; but the announcement was never transformed into desired action.

Cut to present: the central bank is now planning to nab those Bitcoin and altcoin operations that have recorded low trading activities in the past few days — perhaps, weeks. Interestingly, this is by far one of the first active investigations into the alleged Ponzi schemes distributed by the altcoin companies. Previously, Hong Kong police had initiated a similar investigation into a Bitcoin fraud company. However, the investigation was initiated only upon receiving the complaints from the victims.

In case of South Korea, there is no complaint reported against any of these alleged fraud companies — at least by the time we finish this article.