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A fraudulent influencer is a big thinker
Cryptocurrency scammers in South Korea face tough sanctions
A financial influencer in South Korea allegedly ran a massive cryptocurrency scam after dissatisfied investors asked for refunds for bad stock advice he gave. Police have arrested 215 people in connection with the alleged scam.
Twelve of the 215 people arrested are in custody, South Korean news agency Yonhap reported. Those detained include the alleged ringleader of the scam, identified as the middle-aged head of an investment consultancy firm and a YouTuber with 620,000 subscribers. He was referred to only as Mr A. Mr A fled to Australia but has now been arrested.
A fraudulent influencer is a big thinker
Mr. A began selling virtual assets after making a bad stock recommendation in 2020 and customers demanding refunds. He allegedly set up an extensive network of fake companies to carry out the scam. He and his accomplices are accused of receiving 325.6 billion won ($232.7 million) from 15,304 people to invest in 28 cryptocurrencies between December 2021 and March 2023.
Six of the 28 coins were minted by Mr. A and his team, who continued to manipulate the market. The other coins were relatively unknown and held little value, according to the Gyeonggi Southern Police Agency Anti-Corruption and Economic Crimes Investigation Team. Gyeonggi is the province surrounding Seoul.
Related: South Korean police catch $4.1 million crypto scam duo
The scammers accessed 9 million phone numbers collected from Mr A’s YouTube channel and adverts. They used the data to introduce the scam to new victims, mostly middle-aged or elderly, and even impersonated members of the Financial Supervision Service.
Organization chart of Mr. A’s scam companies. Source: Yonhap
Victims paid $854,000 to participate in the scheme and were encouraged to sell their apartments to do so.
Mr A’s 22 Bitcoins ( BTC ) were seized and police have applied to seize $34 million in cash from accounts associated with the scam.
Cryptocurrency scammers in South Korea face tough sanctions
According to Yonhap, the case is the largest cryptocurrency scam in South Korea. The country has seen a surge in scams involving virtual assets in recent years, including scams promoted by influencers.
South Korea, in response, has taken steps to monitor cryptocurrency transactions for suspicious activity, with sentences ranging up to life in prison.
