The government of South Korea has warned people to avoid real-life crypto meetups due to the “high risk” of catching coronavirus in the midst of a second outbreak in the country.
It has been reported by Segye Ilbo that 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 a multi-level marketing (MLM) schemes.
However, the report stated that 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.
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 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.”
As per the report, 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.
Thus, the employees have since been quarantined.