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>>South Korean police have arrested 28 individuals in a raid targeting a suspected cryptocurrency investment fraud ring.

South Korean police have arrested 28 individuals in a raid targeting a suspected cryptocurrency investment fraud ring.

crypthub

1/24/2025, 11:52:26 AM

Police Action and Arrests

South Korean police have taken decisive action against a cryptocurrency investment fraud ring, detaining 28 individuals suspected of its orchestration. The Gwangju Metropolitan Police Agency's Cyber Crime Investigation Unit conducted a raid based on information from Jose Geumyoong Shinmun and KBC broadcaster. Six members were detained while 22 others were charged without detention.

Scope and Impact of the Fraud

The investigation revealed that the fraud ring deceived approximately 50 individuals out of a combined total of $1.3 million between July and December of the previous year. The fraudulent operation manipulated victims through deceptive claims, assuring them of imminent price increases in little-known cryptoassets being listed on major exchanges.

Manipulation and Fraudulent Platform

Police investigations confirmed that these tokens were worthless and had not been listed on any reputable exchange. Suspects posed as cryptocurrency experts, luring victims onto a fraudulent trading platform that was unregistered with the Financial Intelligence Unit. They stole investors' funds under false pretenses, claiming their investments were secure and promising high returns.

Organizational Structure and Charges

The investigation exposed an intricate organizational structure within the group, divided into sales and public relations teams. The suspects face various charges, including organized crime. Further investigations are ongoing while South Korean authorities continue to crack down on fraudulent cryptocurrency activities, meting out severe punishments.