South Korean Authorities Arrest 215 Individuals in $230 Million Crypto Scam
A South Korean fraud operation has been exposed involving a $230 million cryptocurrency scam orchestrated by an individual known as Mr. A. The group exploited vulnerable investors through persuasive tactics and false promises to attract significant investments into fraudulent cryptocurrency assets.
Mr. A and his team of 215 allegedly utilized targeted YouTube ads with enticing messages such as “20 times the principal” and “Sell your apartment and get a loan to buy coins.” This led some investors to make extreme financial decisions, including selling their homes to purchase the scam tokens.
The operation particularly targeted individuals who had previously incurred investment losses, promising them recovery through investments in falsely marketed profitable tokens. Reports indicate that the group sold worthless tokens, taking advantage of investor trust and desperation.
To gain credibility, the group impersonated South Korea’s Financial Supervisory Service using fake IDs and phone numbers. They collected personal IDs from investors under the pretense of processing compensation but later misused these IDs to secure credit loans, further deceiving investors.
Law enforcement traced the group's financial activities across 1,444 bank accounts linked to the fraudulent token sales, helping authorities understand the plot's scale and methods used for laundering proceeds.
Arrest and Asset Seizure
Mr. A was arrested in Australia after fleeing South Korea, traveling through Hong Kong and Singapore. Authorities seized 22 Bitcoins valued at approximately $1.9 million from his possession, along with an additional 47.8 billion won (about $34 million) related to the fraud operation.
This arrest marks a significant step in addressing crypto-related fraud, highlighting the necessity for regulatory vigilance as scammers continue targeting investors seeking high returns.
South Korean Police Arrest Suspect Behind $12 Million Cryptocurrency Scam
South Korean authorities have also investigated other cases, leading to the arrest of a suspect involved in a cryptocurrency scam worth 16 billion won ($12 million). The suspect underwent extensive plastic surgery costing about 21 million won ($15,746) to evade capture. He altered his appearance through procedures on his eyes, nose, and face shape and wore wigs to disguise himself. Despite these efforts, police tracked him down in Gyeonggi Province using phone records, internet activity, and surveillance footage.
The Seoul Metropolitan Police Agency reported that the man operated a fraudulent cryptocurrency mining scheme, promising investors a monthly return of 18%. Between November 2021 and June 2022, he defrauded 158 individuals, with losses ranging from 1.2 million won ($900) to 250 million won ($188,000). He evaded authorities for ten months after missing a pre-trial detention hearing in September 2023.