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South Korea’s largest-ever crypto scam has been exposed, with 215 arrested in connection with it although later only 12 remained in custody.
Last Wednesday (Nov. 13), the local Gyeonggi Nambu police said the group is suspected of stealing 320 billion won (around $229 million). They also confirmed that this includes the alleged ringleader, a man in his 40s referred to as Mr A.
He is accused of selling 28 different virtual tokens to around 15,000 people, allegedly targeting older and middle-aged people. Mr A had run away to Australia but he was found and extradited.
He is also reportedly a YouTuber with more than 600,000 subscribers, according to Korean news agency Yonhap. The police have already seized 22 bitcoins from Mr A’s accounts and they have applied to confiscate an additional $34 million.
How did the crypto scam work?
From December 2021 to March 2023, the group reportedly promised the victims high returns if they invested in the tokens. Yonhap reports that some people even sold their houses to invest in the scam, with the group promising “a chance to change your destiny”.
The police warned that scams like these are becoming more organized and smarter and that people should be wary of promises too good to be true.
According to the police, six of the tokens had been issued on overseas cryptocurrency exchanges and were effectively “worthless”. Up to 1.2 billion won was invested per person.
The group is accused of obtaining personal information, including 9 million phone numbers, through YouTube advertising. They also reportedly pretended to be a financial service by using fake business cards and phone numbers.
South Korea has been named one of the most crypto-friendly countries, and the growing awareness of cryptocurrency there is perhaps why the vulnerable victims felt compelled to invest in the scam.
A report in September also found that South Korea is leading the crypto market in East Asia, with its value around $130 billion.
Featured image credit: Midjourney
