South Korean police uncover $213 million crypto fraud led by a YouTuber, arresting 12 and seizing 22 Bitcoins.
South Korean police have uncovered a massive cryptocurrency fraud case. The main suspect is a YouTuber with 620,000 subscribers. He lured over 15,000 people into investing by falsely advertising high returns. The total amount of fraud is a staggering 213 million US dollars.
The fraud operation involved a man known as Mr. A, a YouTuber in his 40s. He managed to defraud 15,304 investors out of 325.6 billion won ($213 million). It transacted 28 forms of cryptos between December 2021 and March 2023. As per police records, this is the most prominent cryptocurrency investment scam ever seen in South Korea.
Mr. A provided services under a non-existent investment consulting firm. He established six quasi-investment corporate entities and ten sales corporations. Moreover, these companies were involved in managing coin prices, issuing coins, and money laundering. They communicated with potential investors by calling more than 9 million phone numbers. As a result, the group employed such mouthwatering phrases as “20 times your money” and “Change your destiny.” They even told people to sell all their assets and borrow to invest.
This led to the discovery that six of the 28 coins sold were from the fraud group. These coins were floated in overseas exchanges. The group also inflated their prices over the counter by buying them at one price and reselling them at a higher price to the investors. The other 22 were kept below the self-issued volume, had little trading volume, and were almost worthless.
South Korean Police Freeze 47.8B Won in Assets Linked to Crypto Fraud
The group also focused on previous targets of stock and crypto frauds. They were to cover the losses using what they claimed to be good money-making coins. Further, they assumed to be officials from the Financial Supervisory Service to gain people’s trust. The group also impersonated business associates through fake cards and phones to obtain investors’ identification data and get them to take loans.
Most victims are middle and old people who invest substantial money; some even sell their houses. In total, more than 300 billion won was stolen. South Korean Police were able to monitor 1,444 accounts associated with the fraud after a case was filed in February 2023. Mr. A was arrested in Australia after escaping through Hong Kong and Singapore.
Lastly, authorities have seized 22 Bitcoins and applied for preservation of 47.8 billion won in assets. However, a police spokesperson warned, “Investment fraud is becoming more organized. Be cautious of offers with no face-to-face meetings.”
