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- 1 Over 71% of crypto scams are ‘romance scams.’
- 2 Korean Police arrested two residents running crypto scams worth $350 Million.
The South Korean Police shut down two suspected crypto scams that are believed to involve around $350 million and affect hundreds of people across the nation.
As per a Korean media outlet, the ponzi scheme has lured investors and promised they could make huge profits by investing in virtual items. The District Prosecutors Office 5th Criminal Division informed on May 30, 2023, it has detained and indicted online site representatives on the charges of violating the Act.
The authorities refused to reveal the names, referring to the apprehended as Mr. A and Mr. B. As per the filings, A was operating a P2P website that advertised that a user could earn money by purchasing and reselling virtual fashion accessories. The official claims that he defrauded 435 users and wiped out 439.3 Billion in Korean currency.
Reportedly, the detained ponzi-scheme scammers tricked investors into believing their digital asset’s value will increase in the coming days. Women were primarily targeted in this fashion scam.
Per the prosecution’s attorney, the detained ponzi operator confirmed that user investing was managed in eight stages, which indicates that the crime was committed using similar multi-level organizations.
The concerned prosecutors are questioning all ten people sent by the Korean police. The site promoting digital fashion accessories assured its users of 3-16% in a few weeks.
Cryptocurrency Scams incorporate different categories; some widespread ones are romance scams, imposter and giveaway scams, blackmail and extortion scams, and investment and business prospect scams. New crypto-based opportunities, rug pulls, and crypto mining scams are also on the hike.
Is South Korea Struggling With Crypto Frauds?
South Korea has been dealing with a lot of crypto controversies. Several scams have come to light since the failure of the Luna token, which wiped hundreds of Billions from the crypto industry.
Postgraduate students at Korean University conducted a study based on police reports. They revealed that in the financial year 2022, over 71% of people were targeted using ‘romance scams’ using social media and some relatable platforms.
Most victims of romance scams are women seeking below 39 years. It is important to note that most frauds are operated or promoted using social media platforms and matrimonial sites.
The report suggested that users stay away from dating sites because scammers in South Korea use them to lure women and men below 39 years of age.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
