Hotnews No. 98 South Korean Police Uncover Largest Crypto Scam in Nation’s History

The South Korean police have uncovered one of the largest crypto scams in the country’s history, estimated at an astounding $213 million. In this massive operation, 215 people were arrested, while more than 15,000 individuals, mostly middle-aged and elderly, fell victim to the promise of substantial returns.

At the head of this network was a popular YouTuber with over 620,000 followers who drew people into fraudulent investment schemes through his channels and public appearances. The aggressive marketing strategies included over 9 million unsolicited calls to mobile users, urging people to “sell their house” or “take out a loan” to buy coins. With messages like “Change your destiny” and “Returns 20 times your principal,” they created powerful psychological pressure on investors.

The fraudulent scheme created and sold 28 different cryptocurrencies, including six tokens issued and manipulated on foreign exchanges to create an illusion of value. These “promising profit assets” particularly targeted individuals who had previously suffered losses in similar investments.

The organization even used fake representatives from the Financial Supervisory Service, posing as officials with false business cards and phone numbers to gain victims’ trust and personal data. This data was then used to file loan applications in the victims’ names, increasing their debt.

Many victims, desperate for a financial solution, invested their life savings or sold their homes, hoping for financial stability in their later years. The most extreme example was a victim who invested 1.2 billion won (approximately $786,000) into the fraudulent scheme, only to lose everything, including their home.

South Korean authorities emphasize that this case is a serious warning against blind faith in cryptocurrencies and promises of high returns.

This scheme highlights how promises of quick and high profits are often just traps. Invest only after thorough company checks and advice from verified financial experts. Terms that seem too good to be true are usually red flags – protect your money and invest with caution.

Your DefendMe Team