Summary
Cryptocurrency has rapidly gained popularity as a digital asset, attracting both legitimate investors and fraudsters looking to exploit its unregulated nature. And sometimes, even influencers seem to be involved; for instance, in 2021, esports organizationFaZe Clan suspended three members of its teamand completely removed a fourth following allegations of fraud tied to a cryptocurrency “charity token.”
South Korean Police Uncovers Massive Cryptocurrency Scam
Among the 28 virtual assets sold, six were self-issued by Mr. A and his associates and listed on foreign exchanges, where they manipulated the prices before selling them to investors. The remaining 22 virtual assets, while not self-issued, were low in value and lacked substantial market presence. The fraudsters also targeted victims who had previously lost money in other investments, claiming that they could recoup their losses by purchasing the newly promoted coins.
The investigation began after a case was filed in February of last year, prompting the police to analyze over 1,400 accounts linked to the fraudulent operation. Mr. A, who had fled to Australia via Hong Kong and Singapore, was eventually apprehended, and 22 Bitcoins were seized from his possession. Additionally, the authorities have filed for the pre-indictment confiscation and preservation of 47.8 billion won (approximately $34.2 million) in illicit proceeds. A police spokesperson noted the growing sophistication and organization of suchcryptocurrency scamsand urged the public to exercise caution when approached with high-return investment offers, particularly those made online.
In a related incident, reports surfaced recently of aCanadian cryptocurrency firm WonderFi’s CEO being kidnappedin Toronto and held for a $1 million ransom. The ransom was paid electronically, and the individual was safely recovered shortly thereafter.
