By
Bhushan Akolkar
April 26th, 2024
Crypto fraud cases in South Korea are currently on the rise as the industry gains momentum in the country.
South Korean police have arrested two people involved in a crypto scam. According to reports from local media outlets, the authorities nabbed the two at an unnamed location in the nation. The duo, aged between 20 and 30 years, allegedly defrauded a senior citizen of South Korea of approximately 5.5 billion won worth around $4.1 million.
A Failed Promise
The Haeundae Police Station in Busan revealed that the fraudsters posed as crypto experts between September 2022 and December 2022 to lure the victim into investing in the scheme.
The scammers promised the victim, who is in his late 60s, a 70% return on investment in four weeks. The thieves claimed the crypto market was experiencing a boom period, while in reality, the market was reeling from the fall of Terra (LUNA) and the collapse of FTX.
In their words, the thieves said:
“It’s a boom period for coins (cryptocurrency). If you invest 1 billion won, I will call it 1.7 billion won a month later.”
The victim, convinced he would receive a high ROI, made six transactions for the purported investment scheme. In return, the scammers presented him with forged documents as proof that the scheme was real.
Police Detain Two Crypto Fraudsters
The certificates contained different cryptocurrencies and supposedly real estate contracts amounting to a total of $15 million. The police disclosed that the scammers had zero balances in their trading accounts, and the fake documents were part of their scheme to gain the investor’s trust.
Additionally, the South Korean police said that none of the victim’s 5.5 billion won made it to the trading accounts. The duo have been arrested and detained in police custody, awaiting the next move. Despite the arrest, the police did not reveal if the stolen funds had been recovered.
Crypto Scams on the Rise in South Korea
Meanwhile, crypto fraud in South Korea is currently on the rise as the industry gains momentum in the country. In February, the country’s financial authorities captured three senior executives from Haru Invest, a blockchain yield-earning platform for alleged fraud. The trio, which includes the company’s co-CEOs, was accused of stealing approximately 1.1 trillion won ($828 million) from 16000 customers.
That same month, some of the country’s top celebrities and social media influencers were accused of promoting a fraudulent crypto project to the public.
The project, dubbed Winnerz, a crypto project for sports lovers engaged in multiple other businesses, allegedly operates a coin scam. The project used celebrities, YouTubers, and influencers to market its scam coin to investors.
In November 2023, the South Korean police busted a multilevel crypto fraud that defrauded investors $14 million.
The scheme involved many individuals who operated the scheme under different aliases between August 2020 and June 2021. The police raided and shut down the businesses, arresting around 25 suspects at the scene.