Get Some Gold: South Korean Police Raids Firm

How does the idea of getting gold from a wrecked ship sound? Are you already feeling like Jack Sparrow on a treasure hunt? The cryptocurrency space is really dynamic and somewhat hilarious. A company Shinil Group, which launched a cryptocurrency, Shinil Gold Coin had earlier claimed in mid-July that they found the wreckage of Dmitrii Donskoi.

Dmitrii was a Russian cruiser than sank in 1905 during the Russo-Japanese war. The company had claimed that the cruiser was found beneath the waters off Ulleung Island, in the east of the Korean peninsula.

Why their claims should ordinarily have no links to cryptocurrencies, this is where it gets dicey and quite fishy. The company’s Singapore-based affiliate have used this alleged news to entice investors to buy their cryptocurrency. The company had claimed that the cruiser went down with up to 200 tons of gold which are valued at around $134 billion. Well, who doesn’t want a piece of the pie?

Subsequently, Shinil retracted their earlier statement on the amount of gold found. The company admitted that earlier reports were unverified, and the new figure was adjusted to around $9 billion. They also claimed to have submitted documents to the maritime ministry for excavation approval.

To further incentivize investors, the firm promised that the value of its cryptocurrency would increase from $0.18 to about $9 by the end of September. This is an increase of 5000%. As at August 1, the cryptocurrency has raised up to $54 million from about 100,000 investors since its launch.

In a rather interesting turn of events, the South Korean police raided the office of the firm on August 7. 27 investigators from the Seoul Metropolitan Police Agency were sent to collect evidence from the company’s premises in western Seoul, as well as in 7 other locations. CEO of Shinil, Choi Youn-seok has been banned from traveling out of the country as investigations continue. There are also efforts to bring to book Yu Ji-beom, who is the firm’s Singapore-based affiliate. He was widely responsible for spreading posts of the shipwreck on social media. Acquaintances of the suspect have revealed that he had earlier been convicted of real estate fraud and has fled to Vietnam.

The lesson to draw from this is that all that glitters may not necessarily be gold. It is expedient that you perform your own research before investing in any project. Do not swallow the hype hook, line, and sinker.