South Korean Authorities File $250 Million Fraud Lawsuit Against US Cryptocurrency Mining Firm

South Korean prosecutors have filed a multi-million dollar fraud case against US virtual currency mining company Mining Max LLC for allegedly soliciting 270 billion Korean Won (around $250 million) from investors for cryptocurrency mining activities.

The money was collected by the company between September 2016 and October 2017 with a promise of high returns to the investors.

In its statement issued through email, Mining Max has maintained that there are no irregularities in the transactions and the investigations being conducted will vindicate the company and its officials in the end.

“We assure everyone concerned including our customers worldwide that our attorneys are fully cooperating with officials and providing any necessary information. We look forward to this process concluding as quickly as possible and anticipate that the investigation results will vindicate any allegations of wrongdoing on the part of principals of the company located in the U.S.”

During the said period, the company has allegedly solicited investments from roughly 18,000 investors in 54 countries. Within the group, around 14,000 were from South Korea, 2,600 were from the US, 600 from China, and 700 from Japan. The firm also falsified the results provided to the investors.

Based on a report by Yonhap, only $70 million of the $250 million raised went into mining and the rest was used by the company’s principals to enrich themselves.

The South Korean prosecutors have announced that they have already indicted 21 suspects from the company. However, the firm’s top executives, including the chairman and vice chairman, were still at large.

Based on business records, Mining Max LLC is registered in at least two US states, namely, California and Nevada. The company listed Park Nam Ho as its manager and chief executive officer (CEO).