South Korean Authorities Bust $350 Million Crypto Scam Networks
South Korean authorities have cracked down on two alleged cryptocurrency scams, collectively worth around $350 million, involving a "virtual fashion items" marketplace and a fraudulent investment company, leading to multiple indictments and the prevention of a suspect from leaving the country.
South Korean authorities have busted two alleged cryptocurrency frauds, reportedly worth a collective $350 million, with several victims presumed to have been deceived.
According to Joongboo Ilbo, a major case involved a fictitious "virtual fashion items" marketplace, allegedly swindling over 435 investors out of approximately $333 million.
The Suwon District Prosecutor's Office confirmed indictments of the company's CEO and VP on fraud-related charges on May 30.
The officials alleged that from November 2020 to September 2021, the culprits ran a fraudulent "P2P online" platform, promising investors a return rate of 3-16% on investments held for 1-5 days.
The authorities also suggested the accused created fake listings for "virtual" fashion items, including dresses and traditional Korean and Japanese attire, leveraging a "pyramid scheme" to recruit new "members".
The platform was reportedly organized into eight levels, with those at the top promised daily returns of 16%.
The perpetrators reportedly claimed to have a cryptocurrency that would appreciate over time. The investigation extends to 10 more individuals linked to the platform.
In another development reported by KBS, a separate alleged crypto fraud originating in Gangnam, Seoul's financial hub, reportedly defrauded investors of roughly $27 million.
The authorities have barred a man, identified as Gu, from leaving South Korea. Gu is heard in audio recordings reassuring investors that his firm was well-established and that he would be personally accountable for any losses.
Recently, police arrested a suspected crypto fraudster believed to have targeted unsuspecting homemakers and office workers.
