AI Assists South Korean Police Finish $18 Million Cryptocurrency Ponzi Scheme

Artificial intelligence

The suspects behind an infamous crypto Ponzi scheme have been arrested by the South Korean police. This has happened because of the assistance offered by the Artificial Intelligence system. The report was published by the Korea Joongang Daily, a local English-language news outlet.

About The Ponzi Scheme

It was reported that the Ponzi crypto scheme robbed users a total of 21.2 billion won. This is an equivalent of $18.3 million. It occurred within a period that exceeded six months in 2018. This has finally come to an end courtesy of the Artificial Intelligence assistance.

The South Korean police has been on this case since the time it happened. Because of that, special robots were trained by the Seoul Judicial Police Bureau for Public Safety for the same purpose. They would help in nabbing those who were involved in the vice with the help of a number of clues like keywords.

Training The Robots To Catch The Criminals

The Seoul Judicial Police Bureau for Public Safety took time to train the robots on how to use certain keywords for bringing these thugs to book. The keywords that were used included Ponzi, recruiting members and loan. The police then taught the Artificial Intelligence patterns of the Ponzi schemes. This is according to head of the second investigation team of the bureau, Hong Nam-ki.


He went ahead to add that the program also has powers of identifying advertisement patterns as well as identifying the enterprise in question. The enterprise had been caught by evidence offered by an undisclosed informant.

How It Went Down

The whole scheme was masterminded by two chief executive officers, Lee and Bae. They amassed huge sums of money through selling private digital tokens known as M-Coins. They did this together with membership fees that was obtained from recruits. The figures then took advantage of the fact that the public did not have relevant knowledge concerning what was going.

This has been the trend with any scheme that involves the cryptocurrency. The public then handed over their fiat investments to the two CEOs, not knowing what was coming ahead. Hong Nam-ki also noticed another trend here. He realized that a number of people who were attending the presentation were elderly people in their 60s and 70s.

Ponzi Schemes Has Been A Phenomenon For Years

Ponzi schemes have continued to be some of the most persistent phenomenon in the entire market. This is despite the growing legitimacy of the cryptos in the public eye in its entirety. Just as the year started, police were able to nab the controllers of OneCoin.

OneCoin was one of the most notorious global quasi-pyramid scheme that went for several years. The Ponzi scheme had promised the investors huge fortunes, which didn’t come to pass.

OneCoin had its main headquarters in Bulgaria. It was also able to sell lots of its tokens to investors from various parts of the world. As usual, the public got into it without considering the bad reputation that it had.