The South Korean police arrest 215 individuals in connection to a $228 million crypto scam.
The team lured people into investing in a fake platform providing promises of high returns.
The scammers sold 28 tokens, six of which were issued on international crypto exchanges.
In a significant crackdown on crypto scams in South Korea, the police arrested 215 individuals in connection with a massive 320 billion won ($228.4 million) crypto fraud. The arrested individuals included an unidentified YouTuber with 620,000+ subscribers, who orchestrated the scheme.
The investigation was led by the Gyeonggi Southern Provincial Police Agency’s Anti-Corruption and Economic Crime Investigation Unit. On Wednesday, the police stated that the group sold multiple crypto tokens to around 15,000 individuals between December 2021 and March 2023, offering fake return promises. They specifically targeted middle-aged and elderly individuals, attracting them with unrealistic promises of 20-fold returns. These people were even forced by the scammers to sell their apartments to fund the investments.
As per the authority, the group issued six out of the total 28 “worthless” tokens on international crypto exchanges. The scammers also managed to manipulate the tokens’ prices through a team of market makers.
The YouTuber ran a fake investment company which lured customers into investing in the firm. While the clients invested huge sums attracted by the fake promises, the scammer used the fund for reimbursements in his previous stock investment firm. Reportedly, he ran an investment firm that failed in 2020, with customers suffering huge losses. The YouTuber allegedly established six consulting firms, ten sales corporations, and 15 other organizations under his company to support his fraud scheme.
South Korea’s efforts to investigate the fraud scheme are part of the country’s wider initiative to tackle the country’s increasing crypto scams and threats. With its first-ever investor protection act, South Korea prioritizes security, fostering the establishment of the crypto space. In a recent development, South Korea’s Financial Supervisory Service (FSS) has launched stricter crypto regulations to mitigate the increasing market volatility that followed the US election.
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