Police in South Korea arrested a large group of schemers who were part of a cryptocurrency investment scam that received over $230 million.
A South Korean fraud operation has been exposed, with details of a $230 million cryptocurrency scam carried out by a group led by an individual identified as Mr. A. The group exploited vulnerable investors, using persuasive tactics and deceptive promises to draw huge investments into fraudulent cryptocurrency assets.
Mr. A and his 215-man team allegedly used targeted YouTube ads to lure investors. These ads featured attractive messages such as “20 times the principal”, “A chance to change your destiny”, and “Sell your apartment and get a loan to buy coins”. This messaging led many investors to extreme financial decisions, with some reportedly selling their homes to buy the scam tokens.
The fraudulent operation also focused on investors who had already faced losses in prior investments. Mr. A and his associates promised these individuals a recovery of their losses by investing in their tokens, which were falsely marketed as profitable. Reports reveal that the group misled investors by selling them worthless tokens, benefitting from their trust and desperation.
The group went to great lengths to gain credibility, even impersonating South Korea’s Financial Supervisory Service. They used fake IDs and phone numbers, claiming to represent the official regulatory body. As part of their plot, they also collected personal IDs from investors, claiming the documents were for compensation processing. However, these IDs were later used to secure credit loans, further deceiving investors and taking advantage of their personal information.
Law enforcement traced the group’s financial activities across 1,444 bank accounts associated with the fraudulent token sales. This investigation enabled authorities to understand the scale of the plot and identify the methods used to launder the proceeds.
Arrest and Asset Seizure
Mr. A was ultimately arrested in Australia after he had fled South Korea, traveling through Hong Kong and Singapore. In the operation, authorities seized 22 Bitcoins, valued at approximately $1.9 million, from Mr. A’s possession. They also confiscated an additional 47.8 billion won (about $34 million) linked to the fraud operation.
The arrest marks an important step in addressing crypto-related fraud. The case shows the need for regulatory vigilance as crypto scammers continue to target investors seeking high returns.
South Korean Police Arrest Suspect Behind $12 Million Cryptocurrency Scam
South Korean authorities have also carried out investigations of other cases, one of them leading to the arrest of a suspect responsible for a cryptocurrency scam worth 16 billion won ($12 million). The suspect underwent extensive plastic surgery costing approximately 21 million won ($15,746) in an attempt to evade capture. Changing his appearance through procedures on his eyes, nose, and face shape, he also wore wigs to further disguise himself. Despite these efforts, police tracked him down to an apartment in Gyeonggi Province using phone records, internet activity, and surveillance footage.
The Seoul Metropolitan Police Agency reports that the man carried out a fraudulent cryptocurrency mining operation, promising investors a monthly return of 18%. Between November 2021 and June 2022, he reportedly defrauded 158 individuals, with losses ranging from 1.2 million won ($900) to 250 million won ($188,000). He managed to evade authorities for ten months after missing a pre-trial detention hearing in September 2023.
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