Russo-Japanese War treasure as crypto-currency?
The Russo-Japanese War began on February 8, 1904 and ended only a year and a half later after many battles and high human cost. 113 years later, a South Korean company is accused of cheating investors about the discovery of one of the ships sunk in the war.
The discovery of the “Dmitry Donskoy”
In mid-July 2018, news agencies around the world reported that the South Korean Shinil Group had found the shipwreck of the Dmitry Donskoy. The Russian battleship, named after a canonized Grand Duke of Moscow in the 14th century, had been sunk in the naval battle of Tsushima in May 1905, after repeated bombardment.
Finding the Dmitry Donskoy wreck has long been the goal of many salvage companies. As early as 2001, a South Korean company had reported to have located the ship. These claims quickly turned out to be unfounded. The Korea Institute of Ocean Science and Technology (KIOST) also announced in 2003 the discovery of the shipwreck and proved the find with meaningful photos. A salvage operation did not ensue, however.
Is the Dmitry Donskoy hiding a treasure?
In its report, the Shinil Group estimated the value of the treasure allegedly found in the wreck at USD 133 billion. The company announced it had discovered 5,500 boxes filled with gold bars and 200 tons of gold coins off the South Korean island of Ulleungdo. Just as quickly, a correction of these statements was released. A spokesman for the company reported that they had found only boxes that were so tightly closed that it was an indication of a very valuable content. In addition, the permission to recover the treasure was not granted to the Shinil Group (yet?).
In addition, as the news agency Reuters reported, it is not proven that there was such a treasure on board the Dmitry Donskoy, ever. Historians doubt that it would have made sense to entrust a gold reserve of this size to the risky sea route. Nevertheless, the Shinil Group already had very specific plans for what would happen to the salvaged assets: half of the treasure should be handed over to the Russian government. Ten percent was earmarked for South Korean President Moon to invest in job creation.
The confusion surrounding the Shinil Group in Singapore and South Korea
A website under the label “Shinil Group Singapore” allegedly existed, through which investors could buy a cryptocurrency named “Donskoy International”. Those who invested in this cryptocurrency should, according to the “Shinil Group Singapore”, participate pro rata in the profits from the sale of the gold salvaged from the Dmitry Donskoy. Meanwhile, this website is no longer available. The South Korean Shinil Group distanced itself from the cryptocurrency proposal and stated that another company of the same name had operated the website.
The whole affair is getting even more mysterious, since the South Korean Shinil Group has taken video recordings offline, on which the location of the Dmitry Donskoy alledgely was visible. But as you can see on the photographs published by The Telegraph, they show neither gold bullion nor gold coins.
At the beginning of August, there was a report that the South Korean police had deployed 27 investigators to search the offices of the Shinil Group in Seoul. The company is accused of wanting to increase the value of its own shares by reporting on the find. In addition, investors have been enticed to invest in the offered cryptocurrency. South Korean Shinil Group CEO Choi Yong-seok also claims that there is no connection between his company and the Singapore-based company of the same name. However, according to South Korean media reports, his predecessor is said to have founded the Singapore office shortly before the report on the find was leaked. This predecessor is currently being searched for by an international arrest warrant. Choi Yong-seok is also not allowed to leave South Korea while investigations are under way.
This article, authored by Leonie Schulze, was translated from the German publication “Münzwoche”.
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