South Korean Bitcoin Scam Uncovered by Detective Targeting Error – 81 Arrested

A South Korean Bitcoin mining scam went bust in a unexpected turn of events when the scammers accidentally called a police detective, resulting in 81 arrests and the whole operation being exposed.

According to Hankyoreh, it started when a scammer at an illegal call center called a detective in April. The detective from Gyeonggi Southern Provincial Police Agency’s Mobile Criminal Investigation Unit knew it was a scam and decided to play along.

The detective provided his bank account information as asked by the scammers and pretended to be an investor. This allowed the authorities to trace the operation and find the headquarters in Incheon. Many were arrested and the call center was shut down.

They were targeting unsuspecting investors with promises of high returns from Bitcoin mining.

The Elaborate Scheme: Fake Dividends and SIM Cards

The scam operation was so well planned. According to police, the group “rewarded” victims with small dividends of around $7 during a “free trial period” to gain trust. This worked, victims invested big time – from $2,143 to $214,200 each. Police estimated they raised over $1.6 million through this method.

To remain anonymous, the scammers used fake SIM cards, fake bank accounts and leaked personal information. Authorities said the group used 1,980 fake SIM cards, many registered under non-Korean names, to call potential victims.

The only hope left is for individuals in South Korea who own Bitcoin. South Korean Bitcoiners, you are the only hope left. There is nothing left to expect from the South Korean government. I hope you will protect Bitcoin well.
You are the last hope of Korea.#BTC

— CryptoMonk ₿𓄿 (@Monk973852) November 6, 2024

On November 6, South Korea’s Ministry of National Defense tweeted that their website was down due to potential cyber attacks. This is getting serious.

“Please be careful of investment solicitations from people who promise profits via ‘free trials.’ Also, beware of individuals guaranteeing high returns without effort. These are very likely scams,” cautioned a spokesperson for the Gyeonggi Southern Police Agency.

81 Suspects Arrested and $1.6 Million Recovered

The investigation ended with 81 arrests. 9 were detained, including the suspected leader “K”. The leader faces charges under Specific Economic Crimes Punishment Act. 7 others were booked on the same charges and released on bail. 33 were charged for personal data violation.

27 others were indicted for the same offense of using personal data and fake SIM cards but were not detained. The scammers promised victims “big profits” from pooled investment in Bitcoin mining, saying their investment would rent high powered mining rigs to generate guaranteed profits.

This is happening at a time when cryptocurrency is booming in South Korea. According to Cryptonews, South Korea has 7.78 million cryptocurrency investors in the first half of 2024. That’s a lot of interest – and vulnerability to scams.

Key Points:

• Accidental Targeting: The scam ring’s mistake of contacting a police detective led to a major bust.

• 81 Arrests: Police detained 81 suspects, including the alleged ringleader and accomplices.

• $1.6 Million in Losses: Victims lost between $2,143 and $214,200 each in promises of high returns.

Conclusion:

Cryptocurrency scams are getting more sophisticated and investors in the growing digital asset market should be careful. The authorities are warning investors to be aware especially with the rising interest in cryptocurrency investment. Be cautious and skeptical with investment that guarantees profit.