Home Bitcoin News Bitcoin Scam South Korean Police Bust $19 Million Bitcoin Ponzi Scheme Using AI – BTC Wires

South Korean Police Bust $19 Million Bitcoin Ponzi Scheme Using AI – BTC Wires

4 min read

BySumedha Bose

The South Korean police has conducted a magnificent bust with the help of Artificial Intelligence, and that has been making all the news of late.

The authorities used an AI which is a keyword targeting software that helped uncover and bust a $19 million Bitcoin Ponzi scheme.

This scam was targeting people with insufficient knowledge of cryptocurrencies, and was swindling these naive people off their money. Allegedly 56,000 people are said to have been swindled out of $18.7 million.

Apparently, people between 60 and 70 years old, were being targeted in this scam. Victims were lured in with the promises of free cryptocurrency and bonuses. The scheme was depended on a cryptocurrency called ”M-coin”. CEOs of the venture – known only as Lee and Bae – had promised gullible investors that an unlisted cryptocurrency known as M-coin would rise to $0.52, before offering to sell them M-coin for $0.087 per token, a fraction of the price.

A special investigative agency in Seoul was able to bust this scam wide open. They managed to arrest 12 people responsible for the scam using a keyword-targeting AI developed by the Seoul Special Judicial Police Bureau for Public Safety.

Hong Nam-ki, section chief of the bureau, elaborated on how the agency had designed this AI in order to bust this scheme:

”Through keywords such as Ponzi, loan and recruiting members, we were able to teach the AI patterns of Ponzi schemes, the program can also identify advertisement patterns and identified the enterprise in question, which [was caught] with evidence provided by an unnamed informant.”

This scam was run on a very wide scale, as it is being reported that the operation was conducted from around 201 offices. The use of AI to bust open a scheme of this size, is truly commendable.

More such operations can be made possible with the use of AI. The world is only now waking up to the true potential of technology.

Sumedha Bose

Sumedha uses words as her crutch to get by in life. She takes a keen interest in debating, dancing and destroying the patriarchy in her free time. She can be contacted at [email protected].

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