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South Korean Police Arrest ‘Bogus Exchange Ringleaders’
South Korean police officers have arrested 28 people suspected of orchestrating a crypto investment fraud ring. The raid was conducted by the Gwangju Metropolitan Police Agency’s Cyber Crime Investigation Unit.
Details of the Fraudulent Scheme
- 6 suspects are in custody, while 22 have been charged without detention.
- The group allegedly duped about 50 victims out of a total of $1.3 million.
- The fraudulent activities took place between July and December the previous year.
Modus Operandi of the Fraudulent Ring
The group misled victims by claiming they could profit from investing in obscure cryptoassets that were supposedly set to be listed on major exchanges. However, none of these coins were actually listed on any notable exchange.
Impersonation and Deception
The fraudsters posed as crypto experts and enticed victims to a fake trading platform that was not registered with the Financial Intelligence Unit, the regulatory body overseeing South Korean crypto exchanges.
Organized Fraud Operations
The ring had a structured setup, with a sales team unit and a public relations team, to carry out their fraudulent activities. Victims were assured of high profits and safety of their investments, which were later stolen by the group.
Legal Actions and Ongoing Investigations
The suspects are facing charges related to organized crime, and the police are looking into additional crimes linked to the ring. Recent crackdowns in South Korea have exposed numerous fake crypto exchanges, with convicted offenders receiving severe sentences.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
