215 Arrests as $230M Crypto Scam Defrauds 15,000 in S. Korea

As a seasoned crypto investor with a fair share of ups and downs in this digital frontier, I’ve seen my fair share of scams, but the sheer scale and audacity of this South Korean cryptocurrency investment scam is truly astounding. It’s disheartening to see how vulnerable individuals, including older citizens who should be enjoying their golden years, have been targeted and defrauded out of their hard-earned savings.


As a researcher, I’ve found myself compelled to share the recent actions taken by South Korean authorities. They’ve successfully dismantled a large-scale cryptocurrency investment scheme that swindled over 15,000 investors, many of whom are elderly and vulnerable individuals, out of approximately 325 billion won, which is equivalent to around $230 million in U.S. dollars.

215 individuals linked to the fraudulent scheme have been apprehended by the Anti-Corruption and Economic Crime Investigation Unit of the Gyeonggi Southern Provincial Police Agency. Twelve of these suspects were identified as main conspirators. They are being accused under South Korea’s Aggravated Punishment Act for Specific Economic Crimes.

From December 2021 through March 2023, this deceptive scheme was active, featuring a total of 28 fake cryptocurrencies. Among these, six were personally fabricated and then listed on foreign trading platforms with the intention of luring investors.

The investigation uncovered a deceptive practice where individuals falsely posing as financial advisors manipulated cryptocurrency prices and coerced victims into making substantial investments. Regrettably, some investors, often middle-aged or elderly, ended up losing their retirement funds in this scam. Moreover, the perpetrators misused victims’ personal data, pretending to be representatives of a regulatory body like the Financial Supervisory Service, to obtain IDs and secure loans under false identities.

1) The police traced the movement of money across 1,444 bank accounts linked to the criminal organization. Eventually, Mr. A was apprehended in Australia following his escape from South Korea, passing through Hong Kong and Singapore along the way.

Officers took hold of 22 Bitcoins valued at around $1.9 million, and are trying to get a court order to seize about $34 million suspected to be tied to the fraudulent scheme. The ongoing investigation aims to recoup misplaced funds and halt future financial offenses, as conducted by South Korean authorities.

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2024-11-13 16:04