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Suspected South Korean Crypto Fraudsters Scam Wealthy Financier
Recently, South Korean police reported that a group of individuals in their 20s and 30s from Busan’s Haeundae District have been arrested for allegedly defrauding a wealthy financier of over $4.1 million. The police believe that the group convinced the financier, who is in his 60s, to invest by promising him 70% profits.
Details of the Fraudulent Scheme
- The group approached the financier in September 2022 and managed to persuade him to make six separate payments between September and December of the same year.
- They assured the victim that he would receive his profits within a month of investing.
- To further deceive the victim, the group created fake balance certificate files, falsely showing holdings of around $15 million in tokens, while in reality, they had minimal virtual currency in their trading accounts.
Use of Deceptive Tactics
Additionally, the fraudsters employed an accomplice posing as a wealthy real estate agent from Seoul’s Gangnam District. This accomplice pretended to sign a $3 million contract with the group, further gaining the victim’s trust. However, investigations revealed that this contract was also forged.
Rise in Crypto Fraud Cases in South Korea
South Korea has seen a surge in crypto-related fraud cases recently. In a separate incident, a law firm manager was imprisoned for embezzling customer funds to invest in cryptocurrencies privately. Furthermore, authorities are investigating a crypto consultancy accused of targeting elderly investors with false promises of insider tips.
Moreover, there has been an increase in over-the-counter (OTC) crypto thefts, with a multinational gang apprehended last month for suspected involvement in such criminal activities.
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.
