Categories: ICO

Korean Officials Probe Shipwreck ICO for Possible Fraud

Click here to view original web page at www.coindesk.com

Korean police are investigating a cryptocurrency startup claiming to be selling treasure from a sunken ship, the Korea Joongang Daily reported Tuesday.

Authorities are reportedly looking into Shinil Group, which claims to have found a Russian shipwreck from the early 1900s, for possible fraud charges. The company launched its own cryptocurrency, which investors bought with the promise of being able to redeem tokens for treasure from the ship, according to the report. As part of the investigation, officials have issued a travel ban on CEO Choi Yong-seok.

Seoul's Gangseo District Police are planning to interrogate Choi and others associated with the company as part of the alleged fraud case.

Shinil Group announced earlier this month that it had found the wreck of the Dmitrii Donskoi, a Russian Navy warship sunk in 1905, and that the ship might contain up to $134 billion worth of gold, as reported by Reuters. But the company later backtracked on those claims and lowered the figure to $8.6 billion in a press conference on July 26.

The company at the time announced that it intended to launch an ICO for its own token, named Shinil Gold Coin, which will be backed by the discovered ship's gold haul. The token has attracted 60 billion won in investments from around 100,000 people since it was launched this year, Korea Joongang Daily said, citing a source familiar with the matter.

According to a statement published on Shinil Group's website, the company has launched an exchange following the news of the salvage of Donskoi.

Shipwreck image via Shutterstock.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Authorities are reportedly looking into Shinil Group, which […]

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

Bitcoin May Be Laying the Groundwork for a Trend Reversal

Following Bitcoin’s recent plunge into the mid-$9,000 region, the cryptocurrency has been able to post a strong and sustainable bounce… Read More

5 hours ago

The blockchain/crypto week in quotes

“People who are watching the daily price of Bitcoin are really missing the whole point…The whole idea of Bitcoin is… Read More

5 hours ago

Brewing giant gives blockchain to African farmers

AB InBev Africa and BanQu have roped in blockchain technology to uplift smallholder farmers in the global brewing giant’s supply… Read More

5 hours ago

Self-Proclaimed Satoshi Nakamoto’s Bitcoin ‘Reveal’ Is an Epic Fail

The "big reveal" by the latest self-proclaimed Satoshi Nakamoto was an epic failure that overpromised and underdelivered. | Source: Shutterstock… Read More

5 hours ago

Litecoin May Soon Surge Despite Selling Pressure and Recent Dusting Attack

Litecoin has been wrapped in negative sentiment as of late, which has primarily been rooted it its lackluster price action… Read More

5 hours ago

The best ways to buy furniture online for Bitcoins

Overview Buying furniture for cryptocurrency For most of its existence, the Bitcoin community (BTC) believed that cryptocurrency would be a… Read More

11 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More