Korean 333 million USD crypto scam ring busted
1 min readSouth Korean police dismantle a major crypto crime ring. This was reported by Cryptonews on yesterday May 30, 2023. Total value of scams: 333 million USD. Hundreds of victims are said to be affected.
The larger fraud operation was carried out by two perpetrators between 2020 and 2021. They sold “digital fashion” on an online P2P marketplace. These included “virtual” dresses as well as traditional Korean and Japanese clothing, including hanbok and kimono pieces. The platform also included its own cryptocurrency.
The scammers collected $333 million from 435 victims. The operators created a multi-level “pyramid system” to attract new “members” for the “marketplace”. In return, they were promised high interest rates – up to 16 percent per day.
Crypto scams on the rise in South Korea
The South Korean government made fighting crypto crimes one of its top priorities for 2023. It launched the “Virtual Currency Tracking System” to combat cryptocurrency money laundering. In the year 2022, citizens of South Korea sat according to Cointelegraph around 5.6 trillion Korean won (4.3 billion USD) via “illegal” crypto exchanges.
South Korea is also home to the notorious crypto scammer Do Kwon. He was arrested by Interpol in March 2023. The authorities are investigating the founder of Terra Luna. The crypto ecosystem collapsed last year. The damage: around 40 billion US dollars. The crash was one of the catalysts for the current bear market.
