Home » S Korean Police Bust $350m ‘Crypto Rip-off Rings’

S Korean Police Bust $350m ‘Crypto Rip-off Rings’

by CoinVeem

A hand holds US dollar banknotes, as well as a metal token intended to represent Bitcoin in front of a laptop screen with a South Korean flag displayed on its screen.
Supply: Angelov/Adobe

South Korean police have shut down two suspected crypto scams they assume are price a mixed $350 million, with a whole bunch of victims believed to have been duped.

Per Joongboo Ilbo, one case concerned a “digital trend gadgets” market.

This seems to have tricked at the very least 435 “victims” out of a whopping $333 million.

The Suwon District Prosecutor’s Workplace confirmed on Might 30 that it had indicted the CEO and Vice President of {the marketplace} on fraud-related expenses.

Prosecution officers claimed that from November 2020 to September 2021, the people operated an “on-line P2P” web site.

They mentioned this web site “assured” buyers “3-16% returns” on the stakes in the event that they held funds on the platform “for 1-5 days.”

The prosecution additionally claimed that the positioning operators created bogus listings for “digital” trend gadgets.

These included “digital” attire, in addition to conventional Korean and Japanese apparel, together with hanbok and kimono items.

However the operators reportedly used a multi-level “pyramid system” to draw new “members” to the “market.”

Prosecution officers mentioned buyers have been organized into eight ranges.

These on the highest degree have been reportedly advised they may anticipate 16% returns per day.

The operators additionally reportedly claimed to have developed a cryptoasset that they advised buyers would enhance in worth the longer they held onto it.

Prosecutors mentioned they have been investigating 10 different folks linked with the platform.

A graph showing Bitcoin prices versus the South Korean won over the past month.
Bitcoin costs versus the South Korean received over the previous month. (Supply: XE.com)

Crypto Scams Spiking in South Korea?

In the meantime, KBS reported that one other suspected crypto rip-off noticed buyers pay alleged fraudsters some $27 million.

This suspected rip-off operated out of Gangnam, the guts of Seoul’s crypto and finance industries.

Police mentioned they’d barred a person, recognized by his surname Gu, from leaving the nation.

The media outlet produced audio recordings of Gu allegedly telling teams of buyers that his firm was at present headquartered in Japan, however had bases in 23 nations.

Audio recordings appeared to substantiate that Gu advised buyers that “no [investor] has suffered a loss at [the] firm.”

He allegedly claimed that he can be held “personally accountable” for any losses, and mentioned his agency was “respected and reliable.”

Final week, police moved to arrest a suspected crypto scammer who reportedly preyed on unsuspecting “housewives and office workers.”

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