South Korean Authorities Warn Against Crypto Hook Up To Citizens

South Korean Authorities

South Korean authorities have warned its citizens against crypto meet ups. The warning is not just because of the coronavirus pandemic and the risk of getting infected but also to avoid “financial damages” or activities of fraudsters who might want to seize the moment to go about their malicious or illegal activities.

The government of South Korea has issued warnings to the public to avoid real life crypto meetups due to the “high risk” of catching coronavirus in the midst of a second outbreak in the country.

Segye Ilbo reports the authorities not only warned about COVID-19-related fears but of the potential for “financial damages to consumers,” following reports about fraudsters holding meetups to attract people into multi-level marketing (MLM) schemes.

One of the companies quoted by local media outlets is an “unregistered door-to-door sales company” called Muhan Group, which promotes a multilevel marketing investment opportunity allegedly based in cryptoassets. In reality it’s a simple scam, stated the report.

The authorities in the Gwanak District of Seoul noted that in the last month, quarantine officials traced back 83 positive cases to a meetup held by Muhan Group.

The country’s financial watchdog, the Financial Services Commission, said:

“General citizens should stay at their homes as much as possible in accordance with the COVID-19 Prevention Guidelines, and refrain from attending small meetings and investment-related briefings.”

Muhan Group is not the only company raising pandemic concerns for the South Korean authorities. At least 44 employees of an unnamed South Korean blockchain company recently tested positive for COVID-19. The employees have since been quarantined.

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