TechFlow reported on November 13 that South Korean police have arrested 215 suspects involved in a large-scale cryptocurrency investment scam, according to The Block. The fraud caused 15,304 victims to lose more than 325 billion Korean won (approximately $232 million). The Gyeonggi Southern Police Agency's economic crime investigation unit identified 12 core members, including a YouTuber with over 620,000 subscribers.
Between December 2021 and March 2023, the scam group promoted 28 fraudulent tokens using "private placements" and "insider information" as bait. Six of these tokens were issued directly by the criminal group, listed on overseas exchanges through brokers, and then price-manipulated by hired market-making teams. The scammers even advised victims to "sell their apartments" and fully invest in these fraudulent tokens.
Police have applied to the court for the seizure of approximately $34 million in assets linked to the case, including 22 bitcoins held by the ringleader in a hardware wallet.
