South Korean Police Arrest Crypto Scammers for $4.1 Million Fraud Scheme

South Korean Police Arrest Crypto Scammers for $4.1 Million Fraud Scheme

Crypto News – South Korean authorities have apprehended two individuals accused of orchestrating a sophisticated cryptocurrency scam, defrauding a senior citizen of 5.5 billion South Korean won ($4.1 million).

The suspects, both in their 20s and 30s, were detained by the Haeundae Police Station in Busan, South Korea, following an extensive investigation into their fraudulent activities.

Reports indicate that the victim was lured into the scheme with promises of lucrative returns on investments in cryptocurrency, spanning from September to December 2022.

The fraudsters, exploiting the victim’s trust, guaranteed extraordinary profits of 70% on a monthly investment of 1 billion won. They manipulated the victim with persuasive rhetoric, stating, “It’s a boom period for cryptocurrency. Invest 1 billion won, and I’ll turn it into 1.7 billion won within a month.”

Over the course of six separate transactions, the victim transferred a total of 5.5 billion won to the scammers. To further perpetuate their deceit, the fraudsters fabricated balance certificates, falsely showcasing substantial gains from cryptocurrency investments and real estate ventures.

Remarkably, despite the convincing facade of success portrayed by the scammers, South Korean authorities discovered that none of the victim’s funds were actually allocated to cryptocurrency trading accounts. Instead, the fake balance sheets presented a fictionalized narrative of immense wealth, totaling 20 billion won in cryptocurrency holdings.

Although the police acted swiftly to apprehend the perpetrators, details regarding the recovery of the stolen funds remain undisclosed at this time.

In a separate development, attention has turned to the release of Do Kwon, a prominent figure in South Korea’s cryptocurrency landscape and co-founder of Terraform Labs. Kwon, who faced legal repercussions stemming from the collapse of the Terra ecosystem in 2022, was reportedly freed from custody in Montenegro on March 23.

The decision to release Kwon, a foreign national, followed the conclusion of his imprisonment for possessing falsified travel documents. However, his fate remains uncertain as extradition requests from both the United States and South Korea loom large. The Council of the Supreme Court is poised to review the extradition proceedings, determining whether Kwon will be returned to face charges in his native South Korea.