South Korean authorities have arrested 215 people in a massive $232 million cryptocurrency investment scam.
Investigations led by the Anti-Corruption Unit revealed the involvement of the founder of an investment consulting firm, a popular YouTuber with 620,000 followers, whose name has not yet been revealed.
The scheme targeted more than 15,000 victims, mostly elderly people, with the promise of returns of up to 20 times.
The scheme, which operated between December 2021 and March 2023, involved the use of 28 cryptocurrencies, only six of which turned out to be real, while the rest were worthless.
The group artificially raised prices through insider buying before selling tokens to investors.
Some victims suffered significant losses, after being persuaded to sell their property or borrow to invest.
Of those arrested, 12 remain in detention, including the founder who fled to Australia via Hong Kong and Singapore.
The incident highlights the increasing exploitation of older age groups in cryptocurrency schemes, and is not the first such case in the country.
Despite the intense campaigns against fraud, South Korea has seen significant growth in the cryptocurrency market, with its investor base increasing by 21% in the first half of 2024 to reach 7.78 million investors.
The rise in the price of Bitcoin contributed to a 67% increase in daily transaction volume, reflecting the growing interest in cryptocurrencies despite the risks associated with them.