Scamming with garbage coins! South Korean internet celebrity raised 230 million RMB, 215 people arrested and may face lifelong imprisonment?

Senior YouTuber Scam Techniques Revealed

According to the report by the Korean News Agency, the Anti-Corruption and Economic Crime Investigation Team of the Southern District Police Department in Gyeonggi Province, South Korea recently cracked a major cryptocurrency fraud case, arresting a total of 215 people including the main suspect. The main suspect, Mr. A, is a YouTuber with 620,000 subscribers, who is suspected of promoting fraud on his YouTube channel using slogans such as '20 times return on investment' and 'life-changing opportunity'. According to the police investigation, the victims are mostly middle-aged and elderly people. These investors, tempted by high returns, have sold their properties or applied for loans to invest, only to suffer significant losses in the end.

A huge scam network emerges

The investigation shows that the group, from December 2021 to March 2023, used the bait of 28 cryptocurrencies to conduct fraud through the establishment of multiple fictitious investment advisory companies. Among them, 6 types are Virtual Money issued by the group itself and listed on overseas exchanges, with the prices of these Tokens being deliberately manipulated by group members; the remaining 22 types are low-value Tokens.

Image Source: "Korean News Agency" Fraud Group Organization Chart

Through 9 million phone numbers collected from YouTube ads, the scam group successfully defrauded more than 15,000 investors, with a total amount of 325.6 billion Korean won (approximately 7.58 billion New Taiwan dollars). Among the victims are investors who have already suffered losses from previous investments. The scam group continues to defraud by claiming to "compensate for your losses with high-quality currencies". The highest single investment amount reached 1.2 billion Korean won (approximately 27.95 million New Taiwan dollars).

What makes the fraud even more despicable is that the members of the group also impersonate personnel from the South Korean Financial Supervisory Service, using forged documents and phone numbers to contact the victims. They deceive investors by claiming to "assist in compensating for losses" and trick them into providing personal identification information, which they then use to apply for credit loans, further worsening the victims' situation.

The main suspect was arrested, and part of the stolen money was recovered

It is reported that Mr. A, the former head of an investment advisory company, started planning this large-scale cryptocurrency fraud case after being sued by clients for improper stock investment advice in 2020. In order to evade police investigation, the fraud group used up to 1,444 bank accounts for fund transfers. The main suspect, Mr. A, once fled to Australia via Hong Kong and Singapore, but was ultimately arrested by the local police.

Currently, the police have seized 22 BTC (valued at about 64.27 million New Taiwan Dollars) and related assets of about 47.8 billion Korean Won (approximately 1.113 billion New Taiwan Dollars). Law enforcement agencies are actively investigating other involved funds and are committed to assisting victims in recovering their losses. As this is the largest cryptocurrency fraud case in South Korean history, the main suspect and 12 core members have been transferred for prosecution under the Specific Economic Crimes Enhancement Act.

South Korea continues to combat cryptocurrency crime

In recent years, there has been a rising trend in digital asset-related fraud cases in South Korea, especially among influencers and individuals with strong social media presence. In response to such crimes, the South Korean government has strengthened its regulation of suspicious cryptocurrency transactions and implemented severe penalties, including a maximum sentence of life imprisonment. The successful crackdown on this major fraud case not only demonstrates the law enforcement agencies' determination to prosecute such crimes, but also serves as a reminder to investors to carefully evaluate investment risks and not to blindly trust investment advice from influencers, in order to avoid becoming the next victim of fraudsters.

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The article was first published in 'encryption city' with the title 'Relying on rubbish coins to deceive! South Korean internet celebrity attracted 230 million baht, 215 people were arrested and may face lifelong imprisonment?'