This scheme led to over $232 million in losses and harmed more than 15,000 victims.
The police report shared that out of these 215 people. 12 were key figures in the scam, and all have been sent to prosecution. This is one of the largest crypto scams the country has seen.
How the Scheme Worked
The fraud was mainly led by a popular YouTuber with over 620,000 subscribers. This YouTuber, along with other group members, tricked people into buying fake digital tokens. They even advised some victims to “sell their apartments” and put in every penny they had, promising huge returns that never came. The Gyeonggi Southern Provincial Police Agency’s economic crimes team was able to identify these twelve leaders after a detailed investigation.
This scam took place between December 2021 and March 2023, targeting people who wanted to make quick profits. The group used a tactic called a “private sale,” claiming they had insider knowledge of new crypto tokens that would guarantee high returns. They told victims they had advanced information on these unlisted cryptocurrencies, which was just a tall tale to make the scam sound legit. Altogether, the group sold 28 different kinds of fake crypto tokens to take millions of dollars from people.
🚨🇰🇷SOUTH KOREA POLICE ARREST 215 IN $228 MILLION CRYPTO FRAUD
South Korean police have arrested 215 suspects, including the alleged mastermind, in a $228 million cryptocurrency scam.
Authorities report that the group sold 28 “worthless” tokens to around 15,000 investors, using… pic.twitter.com/lumq93jOUa
— Mario Nawfal (@MarioNawfal) November 13, 2024
A YouTuber at the Center of It All
The ringleader, who ran a popular YouTube channel, used their influence to reach thousands of people, especially those new to crypto. The police shared that this YouTuber and other main members of the group played key roles in setting token prices, money laundering, and organizing the overall crypto scam.
By using the YouTube platform to advertise these fraudulent tokens, they were able to reach a large audience and trick them into “investing” in these worthless tokens. Many people who followed this YouTuber trusted them and thought they were getting a solid tip for making money fast, only to realize later that it was a sham.
South Korea police arrest 215 in suspected $228 mln crypto scam https://t.co/oIkbVXrNaa pic.twitter.com/7M3coZGQ8C
— Reuters (@Reuters) November 13, 2024
What Happens Next?
The twelve people identified as the masterminds behind this crypto scam are now facing legal action. These leaders have been detained and will soon be in court. The police hope this serves as a wake-up call for anyone looking to invest in crypto , reminding people to be careful and look before they leap. When it comes to investing, if something sounds too good to be true, it probably is. South Korea’s government has been working to crack down on crypto scam cases, and this recent arrest shows they mean business.
Disclaimer
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