South Korean police have recently arrested three individuals and charged 64 others with fraud in relation to a Ponzi scheme that promised high returns on investment using a blockchain app that could identify pet dogs by their noses.
The scheme involved a company, which has not been named, that raised approximately $127 million from 22,000 people. Most of the victims were in their 60s or older and had no expertise in cryptocurrencies.
The investigation found that the company’s claims were false. The dog nose wrinkle reader was fake and did not use blockchain technology as promised. Additionally, the company had not leased any sites for building pet theme parks as it had claimed.
This is just one of several similar scams that have targeted South Koreans and syphoned billions of dollars from investors in recent months. Authorities warn citizens to be cautious of digital assets that promise guaranteed principal and high returns in the short term.
Here are some tips to avoid falling victim to a Ponzi scheme:
- Do your research before investing in any digital asset.
- Be wary of any investment that promises guaranteed returns.
- Be suspicious of any investment that requires you to recruit other investors.
- If you are unsure about an investment, consult with a financial advisor.
By following these tips, you can help protect yourself from becoming a victim of a Ponzi scheme.