Scams

2,600 Investors Lost $8 Million in a Sunken Ship With Gold ICO Scam

2,600 Investors Lost $8 Million in a Sunken Ship With Gold ICO Scam

If you thought the ‘Titanic’ was a mystery ship story, wait till you hear about the Russian treasure ship which had an Initial Coin Offering fronted by a South Korean treasure hunting firm!

The ICO of the sunken ship’s gold created mystery which led to about 2,600 people investing over 9 billion won which is worth over US$8 million. The investments were made through an ICO offering in the Shinil Group which claimed the ship it found had gold worth over $130 billion.

The token was known as Shinil Gold Coin and was backed by the treasure of the gold from the found sunk ship. The warship that was said to be found was the ‘Dmitrii Donskoi.’

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As reported several signs pointed to the ship being a scam as it was safer to deliver gold by road during the Russo-Japanese war instead of by a ship as claimed.

Two cryptocurrency related websites going public on the discovery made the ICO seem like a scam. Both the websites claimed to be linked to the Shinil Group, however, was listed as belonging to a Seoul based shopping mall.

Along with these shady events, Shinil Group had no rights over the Russian shipwreck according to South Korea’s Ministry of Maritime Affairs and Fisheries. Neither did Shinil Group have the appropriate information to be known as a noteworthy cryptocurrency company such as a white paper and social media accounts to guarantee its existence.

South Korea’s Financial Supervisory Services had issued a warning urging caution from investors.

It turns out it was a scam as reported by the South Korean police, who are still calculating the total fraud in monetary terms.

“If we find more related accounts or confirm cases in which investors used cash, the amount could go up. The number of victims could go down, however, if we exclude cases where the same person transferred money using different accounts.” said the Sophisticated Crime Investigation Unit of Seoul Metropolitan Police Agency.

Early last month, CEO of Shinil Group, Choi Yong-Seok faced a ban from leaving South Korea and his firm’s offices were raided by the Seoul Police.

So next time you see an ICO listing a sunk ship’s treasure as an ICO, remember it could be haunted by a fake company trying to make you greedy!

Image Source: “Flickr”

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Amrit Mirchandani,  A hustler, who believes there is a solution to every problem. A strong believer of Blockchain and a Cryptocurrency enthusiast!
Currently living in the Digital Hub of India, Pune and an extremely friendly and optimistic person. Born and raised in the beautiful island of Sri Lanka and have run businesses ranging from Agriculture to the Digital World. I have had crazy Experiences in Asian Busy towns like Mumbai and Kuala Lumpur to African nations such as Madagascar.