Police To Investigate ICO Tokens Related To Wrecked Ship Discovery
The South Korean police launch an investigation of Shinil Group's activity, suspected of conducting a fraudulent ICO. Tokens were tied to gold, allegedly found on the wrecked warship, according to The Korea Herald's report.
Recently, the firm has announced the discovery of a Russian Empire battleship which sank during the Russian-Japanese War back in 1905. With a reference to an archive's records, the representatives of the Shinil Group claim that there are gold coins and bars on the ship, net worth of which equals $130 billion at the current rate.
Russian warship Dmitrii Donskoi. Photo by Shinil Group
Meanwhile, the team of the startup developed its own tokens, Shinil Gold Coins, meant to be exchanged for the found gold. During ICO, the company succeeded to attract about $ 53.5 million investments.
The price of Shinil Coin, as the team claimed, was tied to allegedly found treasures worth $130 billion. Later, however, the company denied it, lowering the estimate to $8.9 billion. Afterwards, South Korean law enforcement agencies took interest in the startup and started investigating the potential fraud.
Russian warship Dmitrii Donskoi. Featured image from Wikimedia
To seize evidence, the police searched the Shinil's offices in the western Seoul and other parts of the city. The company's president Choi Yong-Seok was banned from leaving South Korea. Besides, Interpol listed the Shinil Group's leader on the Red Notices at the request of the South Korean police. The suspect will be arrested at the customs of any member state of Interpol if he tries to leave Korea.
Meanwhile, there is a boom of schemes in social networks, speculating on tokens exchange rates. As previously reported, scammers gained $825 million from financial manipulations with the cryptocurrency.