South Korean police have apprehended 14 individuals involved in a fraudulent crypto mining scheme that pocketed 16 billion Korean won (about $12.1 million).
Suspect Apprehended
According to police, the scheme’s mastermind, known only as 'Mr. A,' allegedly deceived victims from November 2021 to June 2022 by promising an 18% monthly return on investments in fake crypto mining ventures. The investigation began after police received 21 complaints, leading to the arrest of Mr. A and three others in September 2023. However, Mr. A failed to appear at a pre-trial detention hearing, starting a 10-month manhunt. He was finally arrested in July 2024 after undergoing multiple plastic surgeries estimated to cost around 21 million Korean won ($15,900). Police seized 100 million Korean won ($75,500) in cash and assets worth 1.3 billion Korean won ($982,000) from Mr. A's hideout.
Other South Korean Crypto Frauds
South Korea is home to one of the world’s largest cryptocurrency markets. In the first quarter of 2024, the South Korean won surpassed the US dollar as the most-traded fiat for crypto transactions. However, this has led to numerous frauds. On August 28, Hyungsoo Lee, the CEO of Haru Invest, was stabbed during a court hearing. Lee is on trial for allegedly embezzling $826 million in cryptocurrency from 16,000 Haru users. In another incident in May 2022, an unknown man attempted to enter the apartment of Terraform Labs CEO Kwon Do-hyung and rang his doorbell.
Cryptocurrency Scam in Malaysia
Malaysian police have shut down a fraudulent cryptocurrency call center operating from luxury homes in Kuala Lumpur. In August 2024, 21 individuals were arrested, only one of whom was Malaysian. The group targeted Japanese victims through dating apps like Tinder, using Japanese crypto platforms Bitbank and CoinCheck to receive investments. In September, Philippine authorities arrested 99 individuals linked to an online scam in Manila. The scammers posed as customer service reps for a gaming company to lure victims into investing in fake crypto projects.
These incidents highlight the widespread issue of cryptocurrency fraud across various Asian countries, necessitating strengthened measures to combat such crimes.
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