South Korean ‘Crypto Gangsters’ Busted in $32M Scam Ring
The Elaborate Scam Operation
South Korean law enforcement has made a significant breakthrough in cracking down on a $32 million cryptocurrency scam, which they allege was orchestrated by a network of individuals referred to as “gangsters.” The elaborate operation unfolded within the realm of fake “crypto reading rooms” on popular chat app platforms, and it involved nine groups of individuals who were identified as “violent gangsters” by the Busan Metropolitan Police.
The police managed to apprehend eight individuals suspected of spearheading these fraudulent “reading rooms,” they also rounded up an additional 79 individuals who were deemed as “accomplices” in this intricate scheme. Shockingly, the group successfully convinced 572 people nationwide to invest their money in the scam.
Inside the Scammers’ Playbook
The modus operandi of this criminal gang involved the establishment of deceptive online crypto platforms, the recruitment of investors, the management of bank accounts, and the execution of money laundering activities, as stated by the police. What makes this case even more intriguing is that all the members of this criminal network fell within the age brackets of millennials and Generation Z.
Scammers’ Prey: South Korean Chat App Users
While South Korea has witnessed the proliferation of crypto-themed “reading rooms” on platforms like KakaoTalk, intended for legitimate crypto trading discussions, a darker trend has emerged. Certain chat rooms have become a breeding ground for opportunistic crypto scammers preying on unsuspecting users.
Instances of these Kakao chat rooms promoting suspicious coins and dubious crypto mining “investment” schemes that promise assured profits have come to light. The “gangsters” behind the recent $32 million scam launched their operations in February 2022, masquerading as investment experts offering significant returns through crypto, unlisted stocks, gold, and overseas futures investments.
Customised Targeting: The Dark Web Connection
The fraudulent scheme involved false claims of guaranteed profits and reassurances to potential victims about the safety of their investments. Moreover, investigators suspect that the gang purchased personal data from dark web vendors to customise their approach, targeting victims through personalised text messages and emails.
Towards a Secure Crypto Environment
Despite these troubling developments in the cryptocurrency world, authorities in Busan remain optimistic about launching the world’s first city-run “digital assets” exchange in early 2024. This endeavour represents a step forward in creating a secure and regulated environment for cryptocurrency trading, countering the menace posed by crypto scammers and fraudsters.
