Authorities in South Korea have arrested suspects linked to a $228 million crypto scam, the country’s largest fraud case.
Largest Crypto Fraud Uncovered in South Korea
South Korean police recently arrested 215 individuals linked to an alleged $228 million cryptocurrency scam, marking the country’s largest known crypto fraud case. Authorities say the suspects, led by a figure referred to as Mr. A, operated an extensive ring that deceived thousands of investors with promises of high returns.
Mastermind Behind the Scheme
According to the Gyeonggi Nambu provincial police, Mr. A, the suspected head of the criminal group, was extradited from Australia. The police have seized 22 bitcoins from Mr. A’s accounts and are seeking court approval to confiscate an additional $34 million. Out of the 215 people detained, only 12 remain in custody at this time.
Operations and Token Manipulation
The group allegedly issued six of the 28 tokens through overseas crypto exchanges, with the goal of manipulating their prices. Police described these tokens as “worthless.” The suspects reportedly used a team of market makers to artificially inflate values and attract investors.
Gathering Personal Data for Fraud
The criminal network gathered nearly nine million phone numbers and other personal details, both through digital ads and theft, to secure fraudulent loans. This data was then used to recruit victims and deceive them into purchasing the group’s virtual tokens.
Targeting Vulnerable Victims
Authorities say the group’s consulting and sales teams used popular platforms like YouTube, which amassed hundreds of thousands of subscribers, to reach potential victims. They primarily targeted middle-aged and elderly individuals, often more vulnerable to such scams.
Future Measures to Combat Crypto Fraud
South Korean authorities are pushing for stricter regulations on cryptocurrency to prevent similar incidents in the future. The recent arrests highlight the importance of investor awareness and a strong legal framework in protecting citizens from digital scams.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
