The South Korean authorities have raided exchanges to investigate whether the CEO of Terra, Do Kwon, caused the crash deliberately. India and the United States are hunting Satish Kumbhani, whose project assured backers a 10% return on investment payable in BCC.
Over twelve South Korea-based cryptocurrency exchanges might lose customers as Financial Services Commission (FSC) officials restrict allegedly illegal international companies.
According to local media, the organization identified improperly registered service providers that continue to operate in Korea. The intelligence division of the FSC demanded that the Korean investigative authority stop national access to their websites.
The candidates for the suspension include KuCoin, MEXC, Phemex, XT.com, Bitrue, ZB.com, Bitglobal, CoinW, CoinEX, AAX, ZoomEX, Poloniex, BTCEX, BTCC, DigiFinex, and Pionex.
South Korea Adopts a Rigorous Approach after the Collapse of Terra
The FSC said the above companies had attracted customers through marketing and Korean-language websites. The regulatory agency warned about unregistered markets lacking safeguards, including certified information security management systems. They consider that this could put them at risk of security attacks.
The maximum sentence for transacting business as an unregistered company is five years in prison or a KRW 50 million (USD 38,000) fine. Besides, the intelligence agencies of the countries of origin of the suppliers will receive information on the situation.
After the collapse of the stablecoin TerraUSD (UST) and the token LUNA, the South Korean authorities have tightened the monitoring of cryptocurrencies. In July, they raided exchanges as part of an investigation to determine whether the CEO of Terra, Do Kwon, caused the crash deliberately.
The Indian Authorities Look for the BitConnect Scam Mastermind
Since its launch in 2016, many people have hailed BitConnect as a leading game changer. Due to its popularity among investors seeking high returns in a short period, that platform has caused problems. A sophisticated pyramid scheme led to the loss of USD 2.4 billion.
India and the United States are hunting Satish Kumbhani, who orchestrated the scheme. The project succeeded as it assured backers a whopping 10% return on investment (ROI) payable in BitConnect (BCC), the native currency of the platform.
Many users that had to invest Bitcoin (BTC) in the pyramid scheme lost everything when its leader disappeared with their funds.
India Joins the United States to Search for Satish Kumbhani
However, the Indian authorities joined the United States later in the hunt for the scam mastermind. An investor reported losing nearly 220 BTC after Satish Kumbhani enticed him to deposit 54 BTC in exchange for a 166 BTC return.
In September 2021, the US government filed a complaint against Satish Kumbhani and began searching for him and his allies. Since the leader escaped to safety, the US authorities have looked for him everywhere. The cooperation of India in the investigation seems to make the job easier.
The US authorities have sold USD 56 million worth of assets belonging to Satish Kumbhani to compensate the victims. If the police arrested and convicted him, he might spend over 70 years in jail.
By Alexander Salazar
