Authorities in South Korea said on March 25 that they were investigating allegations that crypto fraudsters had deceived a rich financier out of more than $4.1 million.
The Haeundae District of Busan was the site of the arrests of a “group of persons in their 20s and 30s,” according to Chosun Ilbo.
The suspects allegedly “defrauded a financier in his 60s” of 70% of his investment, according to the police.
Arrest warrants were issued for the group of individuals on suspicion of conspiring to commit fraud. In September 2022, the gang reportedly contacted the financier, according to the officers. The gang allegedly took six payments from the claimed victim between that same month and December 2022.
According to the authorities, they also informed the financier that he might anticipate receiving his winnings in a matter of four weeks.
According to the individual, the organization advised him to take advantage of “a boom moment for crypto.” The perpetrators allegedly “forged balance certificate files” to conceal the fact that they had tokens with a value of around $15 million.
That the gang “barely had any virtual money in their trading accounts” was exactly how the cops put it. According to the authorities, the group’s goal was to gain the man’s trust by having an accomplice act as a wealthy real estate agent in the Gangnam District of Seoul.
The accomplice gave the impression that he was entrusting the organization with $3 million by signing a contract with them.
It was also determined that this contract was “created,” according to police officials. The crypto-keen country of South Korea is seeing a rise in activity from crypto scammers. An attorney’s manager went to prison earlier this month for stealing client funds from his own cryptocurrency portfolio.
Additionally, last month, authorities began investigating a cryptocurrency advisory firm that allegedly targeted vulnerable investors.
Authorities believe the company deceived individuals in their twilight years into parting with the funds by promising them “insider crypto information.”
Last month, police arrested a “multinational” group of individuals they believed were involved in an increase in over-the-counter cryptocurrency thefts.
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