BitcoinWorld

Black_background_logo_BitcoinWorld-removebg-preview
Latest News

Unveiling South Korea’s Crypto Scams: $350 Million Lost in Deceptive Ventures

In a groundbreaking crackdown, South Korean police have recently dismantled two notorious crypto scams that had ensnared countless victims and amassed a staggering combined worth of $350 million. As authorities dig deeper into these fraudulent schemes, shocking details emerge, revealing the manipulation and deception employed by the perpetrators.

One of the scams involved a seemingly innocent “virtual fashion items” marketplace, which managed to swindle a mind-boggling $333 million from at least 435 unsuspecting victims. The CEO and Vice President of this marketplace have been indicted on fraud-related charges by the Suwon District Prosecutor’s Office, shedding light on their elaborate online peer-to-peer (P2P) operation. The perpetrators enticed investors by guaranteeing them returns ranging from 3% to a whopping 16% if they held their funds on the platform for 1-5 days.

To add another layer to their deceit, the scammers populated the marketplace with fabricated listings of “virtual” fashion items, including traditional Korean and Japanese attire like hanbok and kimono pieces. But what made this scheme truly nefarious was the implementation of a multi-level “pyramid system” that exploited new members. Investors were divided into eight levels, with those at the top lured in with promises of 16% returns per day. The perpetrators even claimed to have developed a crypto asset that would appreciate in value the longer it was held, intensifying the allure for potential victims.

The investigation has also revealed that ten other individuals connected to the platform are currently under scrutiny. However, this was not the only crypto scam that South Korean authorities had to contend with. In the heart of Seoul’s crypto and finance industries, another fraudulent operation managed to dupe investors out of an astonishing $27 million. The alleged mastermind behind this scam, a man identified as Gu, has been prohibited from leaving the country.

According to audio recordings obtained by the media, Gu assured investors that his company, supposedly headquartered in Japan but operating in 23 nations, had an impeccable track record with no losses suffered by any investor. He made bold claims of personal responsibility for any losses and touted his firm as reputable and dependable. These recordings further exposed the intricate web of deception spun by the perpetrators.

In recent weeks, the police have also apprehended a suspected crypto scammer who targeted vulnerable individuals such as housewives and office workers. These cases collectively underscore the urgent need for stricter regulations and increased vigilance within the crypto industry.

South Korea’s swift action against these crypto scams serves as a beacon of hope for victims worldwide and a warning to fraudsters that their illicit activities will not go unpunished. As authorities continue their relentless pursuit of justice, it is imperative for potential investors to exercise caution, conduct thorough research, and remain vigilant in order to protect themselves from falling victim to such cunning schemes.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.