South Korea Police seeks Help From Interpol for Treasure Ship ICO Scam

South Korea Police seeks Help From Interpol for Treasure Ship ICO Scam
ICO Scams

Interpol was recently approached by the South Korean police following a token sale fraud of Shinil Gold Coins that were claimed to originate from the sunken Dmitrii Donskoi. According to the reports by the local media, 124,000 investors were scammed out of an estimated $53.5 million.

The Shinil Group, based out of South Korea had announced last month that a shipwreck of 1905 Russian battleship was found. The group claimed that the ship – Dmitrii Donskoi, had 200 tons of gold on board.

The Financial Supervisory Service (FSS) started backtracking the treasure claims made by the Shinil Group, investigating for a potential Initial Coin Offering (ICO) fraud.

However, the ICO pre-sale had already been done by a Singapore company with the same name. The issued tokens, Shinil Gold coins were backed by the treasure from the ship. In fact, Tokyo’s Nikkei stock index reported that the company had run a full-page advertisement in a South Korean newspaper a month before.

The company claimed that they would be sharing a video of the wreck in the first half of 2019. They estimated the value of the treasure at 150 trillion won ($133 billion USD).

The fraudulent group claimed that the value of the Shinil Gold coin was projected to rise to $9 from its present value at $0.03-$0.05 after completing the ICO on cryptocurrency exchanges.

Choi Yong-seok, the President of the Korean Shinil Group spoke out on the allegation that that Korean and the Singapore groups were not related in any way. However, The Korean Herald reported that the founders of the two companies are in fact, siblings.

Notably, the Singapore arm of the Shinil Group has previously been accused of fraud back in 2014. The police have been looking for the man behind this company whose last name is Ryu. Reportedly, the person fled the country in wake of a different investigation. Several countries are on a manhunt to locate Ryu.

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