Founders of IHC coin arrested
The police reported that O.Munkhjin, B.Gantig and B.Erkhembayar, who introduced Inflation Hedging Coin (IHC) coins to the market, were arrested on the night of February 1 and detained. Citizens who lost money after buying a large amount of IHC coins approached the police...
The police reported that O.Munkhjin, B.Gantig and B.Erkhembayar, who introduced Inflation Hedging Coin (IHC) coins to the market, were arrested on the night of February 1 and detained. Citizens who lost money after buying a large amount of IHC coins approached the police.
The shareholders of Ikhbit LLC, which collected 30 billion MNT from citizens by releasing the IHC coin to the market, raided their homes and offices on charges of misappropriating their funds and laundering the income earned by manipulating the market.
This company was founded on August 10, 2021 by B.Erkhembayar, B.Ider-Od, O.Munkhjin, and B.Gantig. However, B.Ider-Od removed his name from the company. The company started trading on August 25, 2021, two weeks after its founding. Initially, one coin was sold on the market for 30 MNT, and there are a total of one trillion IHC coins. 10 percent of the total coins were offered to the public. One investor can buy for a maximum of 15 million MNT, and in a very short time, a total of 30 billion MNT was withdrawn.
Representatives of single mothers and other victims who were defrauded of large sums of money by purchasing Coin, lost their cars and homes, reported to the National Information Center on February 1.
‘I TOOK COINS WITH 142 MILLION MNT AND NOW I JUST LEFT WITH 2 MILLION MNT’
The representative of that citizen said, “I bought a coin called IHC for 140 million MNT. The coin I bought with such money fell to six million MNT five days ago. During the whole year, when I woke up in the morning when I saw the coin, it was falling, so I got depressed and now it is been a year now. My account was hacked again and I left with six million MNT. Now my account has reached 2twomillion MNT. Why didn’t the Financial Regulatory Commission (FRC) and the police give a warning when the coin first appeared? So, I came here to speak out.”
She continued “The people who created the IHC coin often make stories on the Internet and build trust. They said ‘It is a gold-backed coin that would not fall from its issued price. Take it even if it falls.’ I had money in my account so I took it every day. I believed in what O.Munkhjin was saying. 142 million MNT reduced to two million MNT. There are probably thousands of victims like me. I told my parents that it was useful and they took 16 million MNT for coins. No one forced me to buy that coin, but they advertise and encourage me to get it. 142 million MNT is the money I collected throughout my entire life. There are also my brothers and relatives who sold their house and got a salary loan to get it.”
“Do the exchanges operating in our country operate legally and who supervises them? Please let the police investigate this matter. I think many people like me have experienced some loss. It is right to control the company which operates such markets in our country. A written request has been submitted to the police to review the activities of IHC and other coins. Don’t let people suffer a loss again. If you are lost, you should contact the police and investigate.” she said.
‘I BECAME HOMELESS AFTER TAKING MONEY FROM THE SALE OF MY HOUSE’
“Citizen S.Duurenbileg said, “For me, I was going to pay the money from the sale of my house in the ger district as a down payment on the apartment. I also sold my car. Now I live with my sister and my mother. I am homeless. To tell you the truth, I feel the darkness inside. It is really difficult. I am an ordinary guy who works in a taxi service. I bought IHC and SB coins with my money, and now there is a 90 percent drop. SB coin was hacked and lost from the exchange. It was on Coinhub. IHC coin was more than 33 million MNT, but I have four million MNT left. I got coins only through the words of people around me. I am speaking out because many people have suffered like me.”
The authorities that regulate such financial activities and make policies on behalf of the government have been warning since the appearance of coins.
The Financial Regulatory Commission stated on September 20, 2022, “According to Article 17 of the Law on Virtual Asset Service Providers, service providers who were operating before the law came into force under the transitional regulations will be required to register with the Financial Regulatory Commission in September 2022. During this period, the following common mistakes and deficiencies are found when checking the requests submitted by the authorized organizations to the FRC following the requirements specified in the Law on Virtual Asset Service Providers and the ‘Registration Procedure for Virtual Asset Service Providers’:
• This includes not introducing the ISO/MNS/ IEC 27001 standard for information security and privacy for service providers
• Introduced, but not certified by an authorized external organization
• Whether or not the source of contributed capital consists of legal income and its origin is not fully defined
• Documents proving that the authorized official meets the criteria of a suitable person have not been properly prepared
• No automatic control system has been introduced to implement the requirements of the Law on Combating Money Laundering and Terrorist Financing.