Police Investigate Ethereum, Bitcoin Mining ‘Pool’ Following ‘Scam’ Allegations

cryptonews.com:

South Korean police are investigating allegations that a domestic bitcoin (BTC) and ethereum (ETH) crypto mining “pool” is a scam.

Per Yonhap and Asia Kyungjae, the Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit stated that it was conducting a probe into a pool named Ethlot.me and was working with colleagues at police stations across the country on the case.

A group of alleged victims has come forward to state that they were left out of pocket after being told they could expect “guaranteed income” by “buying” crypto mining rigs. This equipment, they were told, would then be operated remotely in nations such as Kazakhstan.

The initiative appears to have centered around a firm named Ethlot, which opened an office in Seoul’s Seocho District in November last year.

The company went on an active recruitment drive via its website Ethlot.me from January 2022, police said. However, the company’s website went down earlier this month, and the community’s main communication channel – a group chat room on the chat app platform Kakao – has also been deleted. The company’s Naver blog has also been taken down.

Cryptonews.com attempted to contact the company via telephone, but was unable to speak to a member of Ethlot staff.

The group’s Instagram account still appears to be online, however, and shows evidence of aggressive marketing efforts in Seoul. These include advertisements on city buses and subway stations, as well as commercials that aired on outdoor digital billboards in public squares.

One post shows what appears to be Ethlot staff or associates holding up a banner in Kazakhstan. The post’s author claimed that “all of our mining machines are here.”

The post’s author also promised “fixed income and safe