South Korean police arrest seven in $30 million crypto scam disguised as charity

A cryptocurrency scam that defrauded 436 victims of approximately 40.9 billion won (about $30 million) has been dismantled with the arrest and detention of seven key suspects. The group operated under the guise of a volunteer organization named 'Brilliance Team,' using stolen female profiles on social media to gain victims' trust.

Authorities revealed that the suspects targeted individuals with significant wealth and local influence, referring to them as 'branch manager candidates.' They lured these individuals into investing in a cryptocurrency, AIXT, by promising immense wealth from its planned listing on major overseas exchanges. To build credibility, the scam initially paid out principal and high returns for over three months. Once candidates were recruited, a multi-level marketing structure was established, offering commissions for recruiting lower-tier members.

The organization established 11 branches nationwide and held large-scale investment seminars in Seoul's major hotels, attracting wealthy individuals and the elderly. High-performance vehicles like Mercedes-Benz and luxury goods were awarded to branches with the best performance to encourage increased investment.

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This case is a crime that maliciously betrayed the strong human trust built under the noble guise of volunteerism. Through extensive account analysis and swift arrest investigations, we have completely neutralized the additional fraudulent acts the suspects were planning.

However, the promised AIXT coin, with a potential return of over 1,000%, was listed on a small, unverified overseas exchange. The organization later closed the exchange without notice, citing further listings on larger overseas exchanges as a reason for repeated delays before ultimately shutting down all branches and disappearing.

Authorities intervened by placing the main suspects under an immediate travel ban and simultaneously raiding 15 operational bases across the country, freezing 560 million won in cryptocurrency. Kim Seong-taek, head of the cyber investigation unit at the Gyeonggi Nambu Provincial Police Agency, condemned the crime as a betrayal of trust built under the noble guise of volunteerism. He vowed to pursue cyber financial criminals relentlessly.

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We will relentlessly pursue and severely punish cyber financial crimes that destroy the lives of ordinary people with a zero-tolerance principle.