As a seasoned crypto investor who has seen my fair share of market fluctuations and scams, this latest news from South Korea leaves me both outraged and disheartened. Having lost hard-earned money to some less-than-reputable operators in the past, I can empathize with the victims of this massive cryptocurrency scam orchestrated by Mr. A, a once-trusted financial influencer.
In South Korea, a prominent figure believed to be a financial advisor has been accused of orchestrating a massive cryptocurrency swindle following investor complaints about poor investment advice. The authorities have apprehended 215 individuals suspected of involvement in this alleged fraudulent activity.
12 individuals, among the 215 apprehended, are still being held in custody, according to South Korean news agency Yonhap. Among those detained is a man believed to be the mastermind behind the scam, who holds dual roles as the middle-aged CEO of an investment advisory firm and a popular YouTuber with nearly 620,000 subscribers. He was referred to as Mr. A in reports. Mr. A had previously fled to Australia but is now back in custody.
A scammy influencer thinks big
Mr. A turned to the sale of virtual assets as a result of a poor stock tip he gave in 2020, which led clients to request their money back. It’s been alleged that he constructed an intricate web of fake companies to execute this fraud. He and his co-conspirators stand accused of receiving approximately $232.7 million from over 15,000 individuals for investments in 28 different cryptocurrencies, between December 2021 and March 2023.
28 coins were produced by Mr. A and his associates, who later allegedly manipulated the market for these coins. The other coins, less recognized and of minimal worth, as per the Anti-Corruption and Economic Crimes Investigation Team of Gyeonggi Province – a region encompassing Seoul.
Scammers exploited a trove of approximately 9 million phone numbers amassed from Mr. A’s YouTube channel and ad campaigns. They leveraged this information to spread their fraudulent schemes, frequently targeting individuals in the middle-aged and elderly demographic, and even pretended to be representatives of the Financial Supervisory Service.
Participants in the plan were required to contribute $854,000 each, with an added incentive to sell their apartments as a means of covering these costs.
22 units of Bitcoin were seized from Mr. A, and authorities are seeking to seize approximately $34 million in cash linked to a fraudulent scheme from related bank accounts.
Crypto scammers in South Korea face harsh consequences
As reported by Yonhap, this instance marks the largest cryptocurrency scam ever uncovered within South Korea. In recent times, the nation has witnessed a surge in instances of fraud involving digital assets, with some fraudsters even leveraging social influence to deceive people.
Consequently, South Korea is taking measures to scrutinize cryptocurrency transactions for any signs of suspicious behavior, and penalties can even lead to a lifetime in prison.
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2024-11-13 20:20