Business partner criticizing Locus Chain as scam indicted on charge of fraud
Another crypto winter appears to be setting in because its strong winds wipe out the values of Bitcoin and other digital assets across the board.
However, every cloud has a silver lining, and some experts expect that during the bleak wintertime, the good and the bad will be distinguished in the blockchain industry.
South Korea’s Locus Chain has claimed that it belongs to the good side because its “advanced blockchain platform is designed to maintain a fast speed without scalability issues.”
“Locus Chain is a blockchain technology that has overcome the limitations of slow performance and scalability of existing blockchain while maintaining perfect decentralization for the first time in the world,” Bloom Technology CEO Lee Sang-yoon said.
Bloom Technology is a South Korean startup, which has developed and operated Locus Chain.
But Bloom Technology and Locus Chain have had real pain in the neck _ one of its business partners with the surname Kim continued to claim that Locus Chain was a scam.
The accusation is related to the explanation that Locus Chain will be used as a payment method for Saudi Arabian oil giant Aramco.
The two sides blamed each other, and the prosecution delved into the case for years. And late last month, it sided with Bloom Technology by deciding to prosecute Kim on charges of fraud.
Bloom Technology notes that all the mess dates back to 2017 when Kim joined the company, introducing himself as the chairman of AHGK, the Korean branch of Al Hermas Group. He also said that he had the group chairman, Prince Fahd of Saudi Arabia, as his superior, according to Bloom Technology.
Back then, Kim showed a spectacular plan, such as selling a large amount of Locus Chain to royal members in the Middle East and using it as a payment method for Aramco oil transactions, according to Bloom Technology.
In the subsequent process, Kim received 300 million won ($230,000) and 100 million Locus Chain from Bloom Technology while presenting documents related to payment guarantees from Canara Bank in India.
Bloom Technology said that Kim abruptly changed his stance and attacked the company, contending that Locus Chain was a scam and he was its victim.
Prosecutors investigated the complicated case for years to indict Kim on charges of fraud.
In a written indictment, the prosecution said, “there was no intention or ability for Kim to provide 1 trillion-won worth of assets as guarantee assets for Locus Chain through Canara Bank of India, and the invoice of Canara Bank requesting a payment guarantee issuance fee was also made falsely.”
It also said, “there was no intention or ability for Kim to allow Locus Chain to be used in Aramco’s oil transactions.”
The court has yet to make its decision and it might take a long time to reach a conclusion.
As the prosecution decides to charge Kim, however, watchers point out that Bloom Technology earned a better position in the long-standing battle.
Comments from Kim’s side were not available.