South Korean police arrest 61 in US$2.5 million crypto scam

A cryptocurrency scam ring operating in South Korea has been dismantled, with police arresting 61 members who allegedly defrauded over 80 investors of approximately 3.3 billion won (US$2.5 million). The group preyed on individuals, primarily those aged between 50 and 70, by falsely promising lucrative returns from a cryptocurrency they claimed was set to be listed on domestic exchanges.

According to the Bucheon Sosa Police Station, the suspects operated four call centers in Seoul's Yeouido district between July and December 2022. They enticed victims with promises of significant profits, claiming their self-developed coin would soon be available on local virtual asset exchanges. To further convince investors, the scammers manipulated trading volumes on exchanges to create an illusion of activity and demand for the coin.

Investigations revealed that the cryptocurrency promoted by the group had no real utility and was highly unlikely to be listed on any legitimate exchange. Authorities have taken action to recover the illicit gains, securing a freeze on assets valued at approximately 992 million won (US$750,000). Five key figures, including the alleged ringleaders, have been taken into custody and sent for prosecution, while efforts continue to apprehend any remaining accomplices.