South Korean police nab duo for $4.1M crypto scam

South Korean police have arrested two individuals for defrauding a senior citizen of 5.5 billion won ($4.1 million) through a cryptocurrency investment scam. The arrests were made by the Haeundae Police Station in Busan, targeting two men in their 20s and 30s. 

Between September and December 2022, the suspects convinced the victim to send a total of 5.5 billion won across six transactions, promising 70% returns on a monthly investment of 1 billion won, according to a local report. Also, these scammers claimed it was a “boom period for cryptocurrency,” ensuring lucrative returns on the investment. To maintain the illusion of legitimate transactions, the fraudsters presented the victim with forged balance certificates and fake balance sheets, falsely showing 20 billion won worth of cryptocurrencies and real estate contracts.

Despite the elaborate scam, none of the victim’s funds were actually invested in crypto trading accounts. The police have detained the individuals responsible for the deception, although there has been no update on the recovery of the stolen funds.

Meanwhile, Cryptopolitan earlier reported that Terraform Labs co-founder Do Kwon was released from prison in Montenegro on March 23.  Kwon had been detained for using fake documents but was released as his regular prison term ended. Following his release, Kwon, a South Korean citizen, was taken for an interview to the police directorate for foreigners, amidst ongoing extradition requests from the United States and South Korea. Kwon faces legal challenges related to the collapse of the Terra ecosystem in 2022, with further proceedings expected to address his extradition and legal status.