Originally published on: November 13, 2024
A financial influencer in South Korea is making headlines after allegedly orchestrating a massive cryptocurrency scam that defrauded investors seeking refunds for poor stock advice. The scam has led to the arrest of 215 individuals involved in the scheme, with 12 still in custody.
According to reports, the alleged mastermind behind the scam, identified only as Mr. A, is a middle-aged head of an investment advisory company and popular YouTuber with over 620,000 subscribers. Mr. A fled to Australia but has since been apprehended and is currently facing charges related to the fraudulent activities.
The scam began when Mr. A started selling virtual assets following a failed stock recommendation in 2020, prompting clients to demand refunds. Allegedly, Mr. A established a network of fake companies to perpetrate the fraud, amassing 325.6 billion Korean won ($232.7 million) from over 15,000 individuals who invested in 28 different cryptocurrencies between December 2021 and March 2023.
Police investigations revealed that six of the cryptocurrencies involved were created by Mr. A and his team, allowing them to manipulate the market for their benefit. The remaining coins were of little value and were used to deceive victims. The scammers also accessed 9 million phone numbers from Mr. A’s YouTube channel and advertising to promote the scam to unsuspecting individuals, many of whom were middle-aged or elderly.
Victims were encouraged to participate in the scheme by selling their properties, resulting in losses amounting to $854,000. Authorities have seized 22 Bitcoin valued at $90,649 from Mr. A, and are pursuing the confiscation of $34 million in cash linked to the scam.
This case marks the largest cryptocurrency fraud in South Korea, shedding light on the rising rates of digital asset-related scams in the country. Influencers have been involved in promoting fraudulent schemes, prompting authorities to implement measures to monitor cryptocurrency transactions and impose severe penalties, including life imprisonment.
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Sources:
– Anh | Corgi Studio
– Asia Express: $12.1M fraud suspect with ‘new face’ arrested, crypto scam boiler rooms busted
