South Korean Crypto Scammers Target Chat App Users
South Korean authorities have issued a warning about crypto scammers targeting users on trading- and investment-themed channels on chat apps. The Sejong South Police Station announced that it is investigating multiple cases, having received about 20 reports from deceived individuals.
Rife Scams in South Korea’s Retail Crypto Market
The retail crypto market in South Korea is large and highly active, with investors gathering in chat app channels labeled “reading rooms.” Apps such as Telegram and KakaoTalk’s Open Chat feature are commonly used for this purpose, with hundreds of crypto-themed chat rooms seen on KakaoTalk, some with up to 1,500 members.
- Investors congregate in chat app channels labeled “reading rooms”
- Channels are populated by traders discussing Bitcoin and altcoin prices
- Some channels promise guaranteed monthly gains, potentially from scammers
Crypto Scammers Also Active on YouTube
Victims have reported joining investment reading rooms after seeing false and exaggerated advertisements on YouTube, which often promise guaranteed returns and advanced trading tips. These scammers operate by offering free services, then encouraging victims to join paid VIP member rooms and deposit large amounts of money on unlicensed crypto exchanges.
Police warn that potential fraud in the crypto reading rooms is high and that financial investments promising high returns while guaranteeing the initial stake should be met with suspicion. In previous instances, police shut down a multimillion-dollar chat app-based crypto scam ring run by a network of gangsters.
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.
