Reports from the Korean media Yonhap state that South Korean authorities are prosecuting U.S. based company for malicious cryptocurrency mining activities. A suit is filed for $250 million.
Reports from the Korean media Yonhap state that South Korean authorities are prosecuting U.S. based company for malicious cryptocurrency mining activities. A suit is filed for $250 million. The Korean authorities alleged Mining Max LLC for carrying away illegal mining operations in the territory of South Korea from September 2016 to October 2017.
Authorities suspect Mining Max LLC stole the money from investors while offering them mining services. Despite that many of the investors claim Mining Max LLX boosted their mining, officials are still cautious. They believe thousands of documents were falsified and large portions of the money going not for the investments promised but straight to the American’s bank accounts. The group consists of investors from South Korea, China, Japan and the USA.
The company quickly replied to the allegations stating that their lawyers are tightly cooperating with the prosecutors, providing them with detailed information on the case. Furthermore, they believe the process is a result of a mistake, which led to wrong accusations.
21 employees were recently indicted, but executives are still not held responsible. According to CoinDesk, Mining Max is a company based in the US, which manufactures Ethereum mining equipment and offers “premium cryptocurrency cloud mining rigs”. CoinDesk further investigated that Mining Max is registered in two states – Nevada and California and has two addresses. Documents show that the chief executive officer is someone called Park Nam Ho, who happens to be part of another site related to mining – cryptocurrenciesmining.com It turns out that Park Nam Ho is also known as Daniel, and is the founder of Angel Legal Service, legal service company, sharing one location with Mining Max.
Bearing in mind that cryptocurrency fraud cases are getting more frequent with the rise in virtual coins’ popularity, we are highly interested in this case, which may turn to be one of the largest ones.