Allegedly driven by a South Korean financial influencer, a big bitcoin scam has resulted in the arrest of 215 people, the highest ever recorded crypto fraud case in the nation. Known as “Mr. A,” the powerful YouTuber and CEO of an investment consulting firm allegedly misled thousands of investors, generating 325.6 billion Korean won (about $232.7 million) by questionable bitcoin schemes.
Mr. A, whose online profile boasts 620,000 followers, initially faced criticism as customers demanded refunds for faulty investment suggestions he provided in 2020. In response, they accused him of building a network of sham businesses to start a sizable crypto investment program. Mr. A and his associates reportedly persuaded over 15,000 individuals to invest in 28 cryptocurrencies over a period of December 2021 to March 2023. Six coins made and altered by Mr. A’s crew were among them; the others were lesser-known, low-value tokens.
🚨 Breaking News: South Korean Authorities Arrest 215 in $228 Million Crypto Scam Bust
— 🐶 Anh | Corgi Studio (@corgi408) November 13, 2024
In a significant crackdown on cryptocurrency fraud, South Korean authorities have arrested 215 individuals connected to a massive scam that defrauded approximately 15,000 investors of 320… pic.twitter.com/yd2qRuzOWl
Targeting middle-aged and older people mostly, the enterprise employed a database of nine million phone numbers—collected from Mr. A’s YouTube subscribers and advertising—to attract possible investors. Con artists pretended to be officials from South Korea’s Financial Supervisory Service to give legitimacy to their offers. Con artists advised victims to make significant investments; some reportedly sold personal belongings, including residences, to participate.
Out of the 215 arrests resulting from the operation, 12 suspects—including Mr. A—still remain in detention. After initially fleeing to Australia, authorities recently arrested Mr. A and transferredAuthorities have seized 22 bitcoins and requested the confiscation of an additional $34 million from accounts associated with the fraud. linked to the fraud.
This instance has pushed South Korean officials to step up their investigation on bitcoin fraud. New rules demand companies managing foreign stablecoin and bitcoin exchanges register and send monthly transaction reports to the Bank of Korea. These measures aim to halt illicit activities such as money laundering and unapproved currency exchanges. Along with more general attempts to control the digital asset market, the government is also proposing extra investor safeguards and rules to standardize bitcoin issuing and trading methods.
Under pressure to create more strict control, the Korean government is also looking into current tax regulations regarding bitcoin earnings. To address continuing issues among the investor community, legislators have suggested postponing a scheduled tax on bitcoin gains until 2028.
This example emphasizes the need for more alertness in the crypto industry and South Korea’s will to reduce fraud in digital asset transactions as the nation tightens its regulatory system.
