Artificial intelligence helps South Korea police to end the $ 18 million Crypto Ponzi scheme

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South Korean police have arrested suspects behind a cryptocurrency ponzi scheme using artificial intelligence (AI), the local English-language news center Korea Joongang Daily reported on April 8.

The scheme, which reportedly won 21.2 billion ($ 18.3 million) in total over a six-month period in 2018, came to an end after the Seoul Special Security Police Station trained robots to capture those involved using keywords and other clues.

"Through keywords such as Ponzi, members of loans and recruitment, we were able to teach the AI ​​patterns of Ponzi schemes & # 39; s," Hong Nam-ki, department head of the agency's second research team, told the publication. He added:

"The program can also identify advertising patterns and identify the relevant company, which was (packed) with evidence provided by a public limited company."

The CEO & # 39; s of the program, known only as Lee and Bae, collected significant sums of money through the sale of personal digital tokens called M-Coins, along with membership fees from recruits, Korea Joongang Daily states.

In accordance with similar arrangements with cryptocurrency, the figures made use of the lack of knowledge of the public about the space to separate them from their fiat investments.

"In our plotting, we saw that most people who attended the swindler presentation for membership were older people in their sixties and seventies," said Hong Nam-ki.

As Cointelegraph indicated, Ponzi schemes remain a persistent phenomenon despite the increasing legitimacy of cryptocurrency in the general public as a whole.

Earlier this year, the authorities caught up with the inspectors of OneCoin, a notorious international quasi-pyramid scheme that ran for several years and promised investors huge fortunes.

OneCoin also sold its own token based on Bulgaria. Cointelegraph warned in 2015 for its lack of reputation.

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Don Bradman

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