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Fraudsters Caught in $4.1 Million Crypto Scam
The Haeundae Police Station in Busan, South Korea, recently apprehended two fraudsters who swindled $4.1 million from a senior citizen under the guise of lucrative crypto investments.
Details of the Scam
- The scammers, in their 20s and 30s, promised a 70% return on investment within 4 weeks.
- The victim, a 60-year-old, lost 5.5 billion South Korean won to the fraudulent scheme.
- The fraudsters used forged documents to deceive the victim into believing they had significant virtual currency holdings.
Arrest and Charges
One of the fraudsters, a man in his 20s, has been arrested on fraud charges, while the other individual, in his 30s, has been booked for aiding and abetting fraud.
South Korean Crypto Tycoon Faces Legal Troubles
Do Kwon, co-founder of Terraform Labs, is embroiled in fraud and tax evasion allegations following the collapse of the $40 billion Terra ecosystem.
Background on TerraUSD Collapse
TerraUSD, a stablecoin tied to the U.S. dollar, suffered a loss of pegging, leading to its downfall alongside the Terra sister token, LUNA.
Legal Action Against Kwon
Kwon, who fled to evade South Korean prosecutors, was caught using a forged passport and sentenced to prison. He faces charges related to the Terra ecosystem collapse.
Upcoming Trial
The SEC is set to begin a trial against Kwon in Manhattan federal court, with measures in place to prevent his escape.
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.
