Amidst the growth of South Korea's cryptocurrency market, a massive crypto fraud has been uncovered, leading to the arrest of 215 individuals.
Large-Scale Crypto Fraud Scheme
The scheme allegedly operated from December 2021 to March of last year, targeting over 15,000 victims with promises of 20-fold returns on digital asset investments. Victims were persuaded to sell their homes or take out loans. The fraud involved 28 different tokens, but only six were actually created by the group.
Arrests and Investigation
The Anti-Corruption and Economic Crime Investigation Unit of the Gyeonggi Southern Provincial Police uncovered the scam, arresting 215 individuals, including employees of the fraudulent investment consulting firm and its founder, a popular YouTuber. The name of the founder is yet to be disclosed. Among those arrested, twelve remain detained.
South Korean Crypto Market Expansion
Despite the uncovering of fraudulent schemes, South Korea's cryptocurrency market continues to expand rapidly. A recent report from the Financial Intelligence Unit reveals that the crypto investor base has grown to 7.78 million in the first half of 2024, up 21% from last year. This growth is largely attributed to the surge in Bitcoin price.
South Korea's efforts to tackle crypto scams highlight the ongoing priority to protect investors despite the burgeoning digital economy.
