Officials: Seoul police raids linked to Russian shipwreck scam

SEOUL, Aug. 20 (UPI) -- Seoul police have raided the homes of officials involved in a local cryptocurrency exchange, in an investigation into a scam linked with a Russian shipwreck.

Police searched and confiscated evidence at the residences and the prison cell of the former head of the cryptocurrency exchange, according to Kyunghyang Shinmun.

Seoul police launched an investigation earlier this month to look into the potential links between the shipwreck discovery and cryptocurrency trade.

Shinil Group claimed last month to have found a 113-year-old Russian shipwreck that held gold bars and coins worth billions. The wreckage belonged to the Russian naval cruiser Dmitri Donskoi, which sank off South Korea's eastern Ulleung Island during the Russo-Japanese war in 1905.

The company issued a new cryptocurrency and attracted investors with a pledge to return benefits from the "treasure ship."