South Korea is one of the leading nations where the growth of cryptos has seen an explosion in recent years. However, as crypto trade is still highly unregulated and partly anonymous, it is challenging to trace and track illicit transactions via this route.
South Korea’s National Tax Agency (NTS) had clamped down on suspected trades and accounts earlier this year. They issued a record number of notifications and warnings to individuals who have yet to disclose their crypto holdings. Yet, crime continues in the Asian nation.
41.6% rise in crypto crime
The Financial Supervisory Service (FSS) had earlier reported that crypto crime statistics have risen by a whopping 41% annually, including 555 cases of questionable transactions, especially with Bitcoin now in the spotlight over its bullish stock market run. To tackle the increased crime rate, authorities have instituted dedicated investigation teams all over the country. Since cryptocurrency is a multi-faceted phenomenon, several prongs of the government have come together to aid in investigations. These include the Financial Services Commission (FSS), the State Affairs Coordination Office, and the National Police Agency, among others.
$16 million virtual scams unearthed
In a case that has the whole nation shocked, a fraudster identified as Lee had duped about 1,300 credulous people within a short span of seven months, stealing an estimated worth of $16 million in crypto and fiat currencies combined. The court has found him guilty and has sentenced him to a six-year prison term.
Lee had built an elaborate scheme wherein he scouted for gullible investors and promised them great returns if they invested in tokens issued by some intangible company of Chinese origin. However, ambition might have given away his ploy as he began claiming that the Chinese company was valued at 500 trillion won and had plans to enter the electric vehicle sector with an investment of 4 trillion won. This caused great suspicion and eventually led to their capture. The court had also sentenced two of Lee’s associates to an 18-month and 8-month prison term.
The rise in crypto-based scams is dangerous to the public. Investors must make informed choices before actually investing.
