M-Coin Crypto Related Scam in South Korea Busted by a Genius Artificial Intelligence Investigator
With the help of a sophisticated AI in South Korea, the police were able to put an end to a $18.5 million ponzi scheme. Korea JoongAng Daily gave the official report on Monday on the end of the crime spree. A special police unit for public safety arrested at least 14 people, including 4 CEO’s, who ran the rip off shopping website and cryptocurrency company.
The website had been in operation for at least one year prior to the arrest, effectively scamming some 56,000 individuals with a member only shopping system. Older customers were the primary target of the Seoul based organization which charged nearly $300 a head for access to the site each year.
Other memberships included a ten-year membership (price unknown), and a premium membership for over $850.
While the police made the arrest, the advanced AI was the main intelligence responsible for weeding out the group of thieves. A member of the investigation bureau running the computer AI stated:
“Through words such as Ponzi, loan and recruiting members, we were able to teach the AI patterns of Ponzi Schemes.”
While stealing money via the membership was the firm’s main route for theft, other methods included a commission-based system that lured more members in through promised payouts to affiliates. There were a supposed 200 offices throughout the country that gave cash rewards to members who brought in others.
Elderly individuals were the main target of the company, as they tended to have less knowledge of cryptocurrency and Ponzi schemes in general.
The $18.5 million in stolen currency was mainly derived from token sales and fees for joining the site. To hide the fact, they were stealing from the authorities, the company used one computer which was hidden in the car of an employee, in case of a bust occurring. The computer was reportedly only used when necessary.
As for the artificial intelligence that located the firm:
“The program can also identify advertisement patterns and identified the enterprise in question, which [was caught] with evidence provided by an unnamed informant,” according to the authorities.
This is just one of the latest scams brought to light in the cryptocurrency realm. Even though cryptocurrency is on a trusted rise with mainstream public, scams still happen. One other well-known scam was the Bulgarian based OneCoin. A cryptocurrency Ponzi that was in operation since 2015 until authorities busted it last year after a long-time reign of fraudulent activity.
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