[Exclusive] Forcing employees to mine coins…Saemaeul Geumgo chairman's abuse of power

Offers benefits for recruiting subscribers

'Ponzi-style' Pi Network forced

Also promoted to customers who visited branches

An allegation has been raised that the chairman of a Saemaeul Geumgo in Dongjak-gu, Seoul, forced employees for years to install and run a cryptocurrency mining app that is not even listed on the domestic market. Testimony also said customers who visited the credit union were even encouraged to mine the cryptocurrency. The Saemaeul Geumgo Central Association conducted an on-site investigation of the credit union for two days starting on the 9th, and the chairman resigned immediately after the investigation.

On the 12th, according to the Saemaeul Geumgo Central Association, Chairman A instructed employees to install and keep the 'Pi Network' app running on their smartphones from 2022 until last month. A repeatedly sent messages such as 'Turn on Pi Network' via KakaoTalk and other channels during working hours and after work to check whether the app was running, and is said to have pressured employees who did not follow the instructions or delayed installation by saying, "Why haven't you done it yet?" and "If you can't even comply with this, it will be difficult to work together."

Some employees complained that the chairman's pressure, which implied personnel evaluation and assignment disadvantages, created an atmosphere in which it was difficult to refuse. The central association's investigation also reportedly found statements that employees were instructed to keep the unrelated mining app running during customer consultations, and that they were ordered to tell former employees to "Start mining again."

Pi Network is a project that has promoted that free mining is possible by pressing a button once a day on a mobile app or inviting acquaintances. Although the number of subscribers reaches tens of millions, basic information such as what blockchain structure it uses and who the key executives are has not been disclosed, leading to persistent domestic and international questions such as "Isn't it close to a multi-level scheme?" and "Isn't it a Ponzi structure?"

Overseas, lawsuits and regulatory risks related to Pi Network are also growing. In the United States, one investor filed a lawsuit against Pi Network-related companies seeking damages of about $10 million, claiming "I lost millions of dollars due to organized fraud." In China, seven financial associations issued a joint statement warning that Pi Network is effectively cited as an example of a 'cryptocurrency with no value' and could be abused for illegal fundraising and pyramid schemes.

The Saemaeul Geumgo Central Association said it will take strict measures based on the investigation results.

Kwon Yong-hoon/Jeong Jin-wook Reporters fact@hankyung.com