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Six Suspected OTC Crypto Scammers Arrested in South Korea
On February 20, six suspected OTC crypto scammers were arrested in Incheon, South Korea. The police confirmed the arrest and stated that the suspects were all aged between 20 and 39. It is believed that they stole $747,000 in cash as part of a bogus over-the-counter (OTC) trade.
Incident Details
- The incident took place in the Songnim District of Eastern Incheon at around 4 pm on February 19.
- An unnamed victim reported that they had arranged to swap about $747,000 for crypto. The victim claimed to have agreed on a cut-price deal for the coins with vendors they presumably contacted via social media channels.
- The vendors reportedly arrived at a meeting point, took the victim’s cash, and counted the money in their van. Once they had finished, the suspects reportedly “pushed” the victim out of their vehicle and sped off.
Police Actions and Warning
The alleged victim filed a police report, and officers used CCTV footage to identify the vehicle, its owner, and the remainder of the group. In response to the incident in Incheon, a police official warned the public to be especially careful, citing a rise in cases of fraud that involve enticing people to sell virtual currency at a low price, and others offering victims the chance to make large profits by investing in virtual currency.
Rise in OTC Crypto Thefts
The number of high-value OTC crypto thefts is increasing in South Korea. Earlier in January, a man in his 20s was arrested in Icheon, Gyeonggi Province, on theft-related charges. It was reported that the man offered to sell crypto at a low price, but instead made off with $10,700 in cash.
Regulatory Concerns
In September 2023, regulators expressed the need for new powers to police the OTC crypto sector. They claimed that domestic OTC markets had become “the epicenter of virtual currency-related crimes” and that the growing list of OTC-related crypto crimes now includes fraud and money laundering.
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.
