Bitcoin platinum high school student frauded again through Defi
#Vanishing act A decentralized finance issue that was controversial this year is being reignited following the Asuka token, a token made by a Korean developer of cryptocurrency. The Asuka coin instantly became a sensation abroad as 10 billion won was gathered in 10 hours since it was issued. The price of one token shot up to $1,600. But on Aug. 3, the developer of the Asuka token shut down the front page and vanished. As of Aug. 4 at 1 p.m., the price of the coin plummeted to $19. #Who is Jang Jong-chan? Jang Jong-chan, CEO of Asuka token, is known as the developer of the token. The name is a nickname used on an online community. Jang later turned out to have made appearances in numerous blockchain meet-up sessions. Some speculate Jang was one of the key figures with ID ‘wjcloud’ who was behind the Bitcoin fraud incident in 2017 that led the coin price to plummet. #Sudden disappearance The rise of the Asuka token continued in the early morning of Aug. 3. But at 7:30 a.m., Jang suddenly exited all the communities and shut down all the front pages related to Asuka. Jang was confirmed to have left his Telegram account. Following the news, the price of Asuka that once reached $1,600 dropped to the $14 range. #Profit made by Jang Jong-chan After Jang left the community, they were rumored to have earned some 10 billion won. This, however, isn’t true. 10 billion won is the money of investors, not owned by Jang. But considering that a developer has the owner key, the person is able to access the liquidity pool. As for Jang, he or she burnt the owner key, and therefore, its difficult to say whether this person earned profit. Growfi co-founder Mike Mu said, “There are two channels a defi token developer can earn profit from: premining and the volume of admin, which is the amount of tokens promised to be given to a developer before they are issued. To know the exact profit earned, analyzing the contract is necessary, but that would require more time at this point.” Asuka burned out 1,000 tokens, and therefore, is more likely to have made money from admin volume. The profit from 40 admin in volume totals 76.3 million won based on the calculation of each token price standing at its peak of $1,600. #Can investors get their money back? The damage incurred to investors is concerning after the front page of the token service was shut down. Mu said, “Even if the front page was shut down, there is a way to withdraw the money by connecting metamask on Eatherscan.” That explains the reason for the continuous drop in capital in the liquidity pool following the shutdown of the page. Considering that defi is decentralized finance, some say there isn’t grounds to impose penalties on this case. Jang previously noted an exemption clause, saying it isn’t his or her fault even if things went wrong. But regardless of the lack of related regulations, there are many cases in which people who have suddenly vanished after committing fraud have been punished. “Suddenly shutting down the front page and unilaterally selling off tokens could be subject to punishment,” said a person involved in cryptocurrency.