A corporate-style illegal fundraising ring that lured investors with promises of high returns and allegedly swindled them out of tens of billions of won has been referred to prosecutors, along with dozens of its members.

The Anti-Corruption and Economic Crime Investigation Unit of the North Chungcheong Provincial Police Agency said it had referred two people, including the ring's alleged leader, identified as A, to prosecutors in custody. The charges include fraud under the Act on the Aggravated Punishment, etc. of Specific Economic Crimes and violations of the Act on the Regulation of Conducting Fund-Raising Business Without Permission. Investigators say the group raised money by touting investments in coins listed overseas. The other 84 members were referred without detention.

A and the other suspects are accused of taking 10.2 billion KRW (about 7.45 million USD) from about 75,000 people over a year, from September last year through September this year.

Investigators found that the group operated like a company, with a headquarters in Seoul and 51 branches nationwide, and employed 153 executives and staff members.

The group listed coins on overseas exchanges and used automated programs to manipulate prices and fabricate trading volumes, drawing in investors.

Police also referred to prosecutors another group accused of swindling investors out of tens of billions of won by promoting high-return investments in an electric vehicle battery business.

B, the head of an illegal fundraising company, and 15 others were referred without detention on charges including violations of the Act on the Regulation of Conducting Fund-Raising Business Without Permission and the Door-to-Door Sales Act. They are accused of taking more than 66.1 billion KRW (about 48.3 million USD) from about 33,000 people from October 2024 through July last year.

Investigators found that the group recruited members by holding investment presentations in South Korea and overseas to promote its electric vehicle battery business.

Between June and October, North Chungcheong police arrested 103 members of illegal fundraising rings and referred them to prosecutors.

A corporate-style illegal fundraising ring that lured investors with promises of high retu …

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