South Korean P2P CEO accused of using client funds to buy crypto

The CEO of a large South Korean P2P lender was accused of using funds for a construction project to make personal cryptography purchases.

According to a report By the local media NBN Media, an unnamed investor and an operator of investment capital funds has been investing money in the P2P financial lender construction project since 2018.

Although the report did not identify the name of the CEO or revealed the company in which he works, it was noted that the investment project announced on the company platform was for a residential construction project of low height to Incheon, South Korea. The anonymous investor agreed to support the project financially, citing the reliability of the company and long -standing confidence in the CEO, which the investor had known before the partnership.

However, suspicions began to occur after the CEO asked the investor to transfer an additional 100 million won (around $ 69,430) to the project. The investor made the transfer due to “their long -standing trust” in the company, but quickly realized that it was a mistake.

The investor quickly discovered that the funds he had sent to the CEO were not used to build a residential building, but they were used to support the CEO’s own personal investments. The investor alleged that the CEO had pocketed funds from the so-called construction project for his own personal gain.

The investor said he felt “a great feeling of betrayal” to discover that his funds had been diverted, still damaging confidence between companies.

“As a famous domestic P2P site, the promise to customers should be absolute priority, but Mr. B [the CEO] broke it, ”said the investor.

According to the report, neither the CEO nor the company provided a complete explanation to the investor and did not “remain silent on the issue” even after the journalists visited the company’s office in Gangnam, Seoul at the Search for answers.

In addition, the South Korean investor said that the CEO had returned the initial amount invested, but he had not received the promised interest from the company. Consequently, he plans to take legal proceedings and very soon translate the CEO and the P2P loan company in justice.

“This is a serious act of betrayal for an individual to use funds received under the pretext of business investment,” said the investor, adding that he planned to “reveal the truth about this case Clear of the embezzlement of funds and customer deception “.

In early January, South Korean regulators announcement that they plan to alleviate restrictions on investment in corporate cryptography. Under the change of rule, companies will be able to register real accounts on Crypto exchanges, which was previously reserved for retail investors merchant in crypto.