Lawsuit Filed Against DeBlock, a South Korean Company, for Allegedly Running Fraudulent Advertisements: CEO and Several Executives Charged, Accused of Laundering Money Through USDT

In 2019, South Korean company Dable INC.INC was involved in a major fraud case, where the company's Singaporean general manager, Lin Jinhan, and others were suspected of selling advertising spaces on platforms such as LINE, Facebook, and Google Ads to assist unidentified individuals in placing fraudulent advertisements. The amount of fraud involved was reported to be at least NT$380.3 million. Today, the Taipei District Prosecutor's Office charged Lin Jinhan and other individuals with aggravated fraud and money laundering.

Anonymous Individual Uses USDT to Place Fraudulent Advertisements

In January 2022, Debo Company's advertising executive, Shi Kaixiang, was approached by an unidentified individual who wished to pay for investment advertisements using the cryptocurrency USDT. Shi Kaixiang then created an "micromill" advertising agent account within the company's system and started collecting advertising fees using his and his wife's cryptocurrency exchange accounts starting from March 2022. Upon receiving USDT, Shi Kaixiang converted it to New Taiwan Dollars, transferred it to his father and wife's bank accounts, and eventually deposited it into Debo Company's bank account.

Fraudulent Advertisements Lure Victims, Advertisers Violate Laws

An investigation revealed that Lin Jinhan, Shi Kaixiang, and business manager Wang Bojun were aware that these investment advertisements used fabricated and exaggerated content, impersonating investment celebrities or financial experts, yet they allowed them to be published. These advertisements attracted people to join LINE friends or groups used by the fraud group, with ad copy such as: "Don't deposit 200,000, invest for 3 months and at least triple your money."

Similar cases of fraudulent advertising have also occurred in the Taiwanese cryptocurrency circle. The exchange JPEX caused losses of up to 4.8 billion New Taiwan Dollars in 2023 through extensive promotion involving celebrities and media. Singer Chen Lingjiu was listed as a defendant for receiving a payment of one million New Taiwan Dollars.

Is Taiwan taking zero action against JPEX? JPEX spreads millions in budget in Taiwan, spokespersons and sponsored media profit generously

Intentionally Evading Scrutiny for Money Gain

Lin Jinhan, Shi Kaixiang, and Wang Bojun assisted pseudonymous individuals like "Black and White" in evading content reviews by external personnel or media platforms of Debo Company, allowing them to continue placing fraudulent advertisements using Debo Company's system.

Advertisements Lure Victims to Join Line Groups, Scamming Over 300 Million New Taiwan Dollars

The prosecution pointed out that this case involved 92 victims. These individuals clicked on the ads, joined LINE friends or groups, and were immediately scammed by the fraud group using a fictitious securities investment company APP to deceive money. These false advertisements were clicked on major media platforms a total of 67,428,940 times, with the fraud group scamming at least over 380 million New Taiwan Dollars.

Using USDT to Evade Compliance! Involving Money Laundering and Violations of Business Accounting Laws

According to the investigation, Shi Kaixiang cashed out 340,929,767 USDT, earning 87,514,607 USDT. The remaining 253,415,160 USDT was transferred to Debo Company. In addition, financial manager Zhang Yixin is suspected of violating business accounting laws by monthly issuing 28 false invoices from April 2022 to October 2023 based on payments received through Shi Kaixiang's shell company.

This fraudulent advertising case exposed various illegal activities within Debo Company. The prosecution's indictment of the involved individuals will further reveal the full extent of this multinational fraud group.

Convicted of fraud for brick-moving! Taiwan's Ton ecosystem member on probation for five years, highlighting regulatory loopholes in virtual asset management companies

Debo Statement: Former Employee's Individual Actions

Debo Company publicly responded stating:

1. Individual Actions Unrelated to the Company:
The criminal actions of the former employee surnamed Shi (such as money laundering, fraud, embezzlement, and document forgery) are personal actions unrelated to the company's policies and management systems, and the company has never approved or condoned such behavior.

2. Company's Position and Victim Identity:
Debo Co., Ltd. is a victim of this incident. The former employee surnamed Shi abused his position for illegal profit, damaging the company's finances and reputation. The company has terminated his employment, filed civil and criminal lawsuits, and actively cooperated with judicial investigations.

3. Circumvention of Review Mechanisms:
The company has rigorous review mechanisms, but the former employee surnamed Shi used his position and professional knowledge to guide the fraud group in bypassing the review mechanisms. The company will strengthen internal supervision and review efforts to ensure transparent and compliant operations and raise customer KYC review standards.

4. Contradictions in Media Reports:
Media reports that the former employee surnamed Shi guided the fraud group to evade company reviews, indicating that the review mechanisms were circumvented. However, the reports also mentioned that the company allowed fraudulent advertisements to be placed, contradicting the company's internal control mechanisms, which were actually the personal actions of the former employee surnamed Shi.

5. Appeal to the Media:
We urge the media to follow the presumption of innocence principle and maintain fairness and objectivity in reporting. The company will fully cooperate with judicial investigations and hopes to clarify the facts as soon as possible.

Debo Co., Ltd. reiterates its zero-tolerance for any illegal activities and will strive to uphold the company's legal rights and reputation.