Cryptocurrency scams come in many different shapes and forms these days. It appears a new scam has been uncovered in South Korea last week. Shinil Group is believed to have pulled off a cryptocurrency scam claiming to pay investors in sunken treasures recovered from a Russian shipwreck.

Shinil Group is in the Crosshairs

The entire story surrounding Shinil Group is both interesting and worrisome. The South Korean firm has made claims regarding the potential recovery of a sunken Russian shipwreck. It is rumored this ship has a cargo hold full of gold, which is estimated to be worth $131.8bn. Such outrageous claims immediately raise a lot of concerns and suspicion.

Funding such a recovery dive is no easy feat either. Shinil Group tried to cater to cryptocurrency users by offering them payments in sunken treasure. Although this concept makes a bit of sense on paper, it is highly unlikely investors will ever see their money returned to them. Since there is no evidence of the sunken Russian shipwreck being located, let alone it containing any gold, anyone contributing to this cause is taking a very big risk.

More about the Case

Over the past few months, the company has attracted several billion dollars in funding by launching the Shinil Gold Coin. This currency would be backed by any gold recovered from the shipwreck accordingly, but it didn’t take long for the South Korean Financial Supervisory Service to look into this company and see what scam it was trying to pull off.

One person by the name of Yu-Ji Beom is wanted by the police at this stage. He has been previously convicted of real estate fraud and is currently not residing in South Korea to avoid any investigations. Until more evidence regarding the alleged wreck surfaces, it remains doubtful investors will recoup their losses.

Final Thoughts

Cryptocurrency investment opportunities tend to attract a lot of attention from people looking to strike it rich. Although a lot of money can be made with established cryptocurrencies, there are a fair few projects on the market which should be avoided at all costs. The Shinil Gold Coin venture is a good example of how people will attempt to defraud investors with somewhat believable claims. Cracking down on such efforts will bring more legitimacy to the cryptocurrency industry as a whole.

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