South Korean police have uncovered a fraudulent organization that enticed investors into fake crypto investments. This group, operating as an investment advisory firm, caused significant losses and amassed hundreds of millions of dollars.

Massive Arrests and Investigation

The Anti-Corruption and Economic Crimes Investigation Unit from South Gyeonggi Province arrested a total of 215 individuals involved in this fraudulent quasi-investment company, according to Yonhap News. Out of these, 12 individuals, including a popular YouTuber known as "Mr. A," were taken into custody on fraud charges. This YouTuber allegedly had as many as 620,000 subscribers.

Fraudulent Scheme and Crypto Gains

According to reports, the group raised a total of 325.6 billion won (approximately $230 million) from 15,304 investors. Between December 2021 and March 2023, the group sold 28 different cryptocurrency assets. Six of these tokens were listed on foreign exchanges via brokers, while the remaining 22 tokens, which had no real value, originated from other entities.

Targeting Vulnerable Investors

Most of the investors were middle-aged and elderly, with some investing as much as 1.2 billion won (over $852,000). Mr. A acquired contact information of potential investors through YouTube ads that promised returns of up to 20 times the principal or a "chance to change one's fate," encouraging people to sell their assets to buy cryptocurrency.

Manipulation and Deception of Investors

The fraudulent firm also targeted those who had already suffered losses from previous investments, promising to compensate their losses with "high-potential" cryptocurrencies. To deceive investors further, the group even impersonated South Korea's financial regulatory service, collecting IDs with the promise of compensating losses. These IDs were later used to obtain loans.

Tracking and Seizing Assets

Police tracked the financial flows through 1,444 accounts used to sell fake tokens. Mr. A was eventually arrested in Australia after fleeing South Korea through Hong Kong and Singapore. Police seized 22 bitcoins (worth about $1.9 million) and an additional 47.8 billion won (around $34 million) in assets from the fraudulent group.


#SouthKorea , #Cryptoscam , #cryptofraud , #cybercrime , #CryptoNewss

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