South Korean Police Arrest 215 for $232 Million Crypto Scam

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by Giorgi Kostiuk

2 years ago

South Korean police have uncovered a large-scale cryptocurrency investment scam that has affected over 15,000 individuals.

Massive Crypto Scam

South Korean police have apprehended 215 individuals tied to a large-scale financial scam, defrauding over 15,000 people and causing losses of 325.6 billion won ($232 million). The scam was led by a fake investment consulting firm fronted by a popular YouTuber with over 620,000 followers. It operated from December 2021 to March 2023, targeting primarily middle-aged and elderly investors.

Token Manipulation

The scam involved 28 different tokens, six of which were created and manipulated by the ringleader and his associates. The remaining 22 tokens had low trading volumes, suggesting their little value. They were listed on foreign exchanges through brokers, while market-making teams artificially inflated their prices to further deceive investors.

Arrests and Seizures

Twelve key figures remain in detention, including the YouTuber, who initially fled South Korea for Australia, passing through Hong Kong and Singapore. South Korean police, known for not disclosing suspects' identities, referred to the YouTuber as “A”. They have seized about $34 million worth of assets linked to the scam, including 22 Bitcoins found in the ringleader’s hard wallet. A court approval has been requested to further confiscate assets for victim reimbursement.

South Korean authorities continue to warn citizens against investment offers, particularly those aggressively marketed through social media.

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