Police said Monday they launched an investigation into a suspected fraudulent claim by a local company that it discovered the wreck of a sunken Russian warship from the early 20th century.

The probe came as Shinil Group announced on July 15 it found the wreck of the Dmitrii Donskoi, a Russian warship that disappeared in 1905 during the Russo-Japanese war. It released submarine footage of what it claimed to be the wreck beneath the waters off Ulleung Island, east of the peninsula.

Speculation spread quickly that the ship had gone down with 200 tons of gold, worth 130 trillion won ($116 billion), causing the financial authorities to watch the stock market for any unusual movement.

Police said they have banned Choi Yong-seok, the chief of Shinil Group, from travel. They said a few others subject to the investigation have also been given a travel ban but refused to release their names as the probe is ongoing.

Police will contact those claiming to be victims and bring other officials in for questioning. (Yonhap)