Reports from Yonhap, a South Korean news source, suggest that the country’s authorities have filed a suit against a cryptocurrency mining company based in the US, alleging that a multi-million dollar fraud has occurred.

Prosecutors held a press briefing in which they alleged that between September 2016 and October 2017, Mining Max LLC solicited around $250 million USD (270 billion Korean won) from those who invested in its cryptocurrency mining activities.

However, rather than being invested in developing and providing a service, prosecutors argue that the majority of this money was used to enrich the lives of those who run the firm. The Yonhap report states that just $70 million (of the estimated $250 million which was invested) was actually used for mining.

Further allegations made by the prosecutors include the claim that reports and results shown to 18,000 people who invested in the company were falsified. The majority of the 18,000 investors are from South Korea, with 2,600 based in the US, and the remaining 1,300 located in China or Japan.

Prosecutors say that 21 suspects from Mining Max LLC have been indicted. However, the executives, including the chair and vice chair of the company, are still at large.