South Korean prosecutors have charged a group of suspected crypto fraudsters. These criminals impersonated regulators and scammed victims, stealing $22.7 million. Authorities identified four men in their 40s as the masterminds behind the elaborate scheme.
Sophisticated Tactics Used to Deceive Victims
The fraudsters operated fake trading platforms, BISSNEX and BDCDP, which they falsely presented as legitimate stock and crypto exchanges. They specifically targeted worried investors, demanding $5,000 worth of USDT in exchange for their supposed services.
Additionally, reports show that the criminals used YouTube channels and Naver Band chat groups to attract victims. Once the victims joined these platforms, the fraudsters sent them letters designed to look like official communications from the Financial Supervisory Service (FSS). These letters included seals from the FSS and the Korean National Police Agency to make them appear legitimate.
Scare Tactics Deployed to Pressure Investors
The letters accused a 41-year-old man of engaging in illegal financial transactions on the BISSNEX platform. The fraudsters claimed he had stolen sensitive transaction data and scammed the platform’s users. To reassure clients, they requested a “refundable” deposit of $5,000 in USDT, promising to return the funds once their so-called investigation concluded. Furthermore, they claimed to have frozen the crypto wallets of the man and his associates to protect the platform’s integrity.
Recurring Patterns of Crypto Fraud in South Korea
Authorities note that these types of scams have become common in South Korea. Fraudsters frequently set up fake exchanges, freeze wallets, and demand investigation fees paid in cryptocurrency. In this particular case, the criminals posed as representatives of reputable financial firms such as Shinyoung Securities and DB Financial Investment. To lure in more victims, they also used fake bankbooks and posted images of cash on their Band channels.
The investigation remains ongoing as prosecutors in Suwon continue to gather evidence. They believe the total losses could increase, with some victims claiming they lost over 2 billion won ($1.5 million). Overall, the damages are estimated at 50 billion won ($22.7 million).
Calls for Stricter Regulations
In light of this case, legal experts are calling for stricter regulations on crypto “reading rooms” hosted on chat apps. These platforms have become breeding grounds for scams. Authorities remain determined to uncover the full extent of the fraud and ensure justice for the victims.
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