South Korean police have detained 215 individuals suspected of orchestrating the largest cryptocurrency fraud to date, amounting to approximately $228.4 million. Among those taken into custody is the alleged leader of the criminal group, known as “Mr. A”, who had been evading authorities in Australia before being apprehended and repatriated to South Korea. Authorities have seized 22 bitcoins from Mr. A and are currently attempting to access assets valued at around $34 million. Presently, only 12 individuals remain incarcerated in relation to the case.
The criminal organization reportedly peddled 28 different types of virtual tokens to approximately 15,000 individuals, promising substantial returns on investment. The group listed six of these tokens on foreign cryptocurrency exchanges and utilized pump-and-dump schemes to artificially inflate prices. Police underscored that all the tokens sold by the group were essentially worthless.
Furthermore, the scammers gathered personal data, including nearly 9 million phone numbers, through digital advertising and data breaches. This information was then used to apply for fraudulent loans. To attract victims, the fraudsters established consultancy firms and sales teams, promoting their virtual assets to subscribers of a YouTube channel where lucrative investments were aggressively marketed. As a result, many individuals, particularly middle-aged and elderly individuals, fell prey to the promise of quick profits.