Vanessa
A massive South Korea crypto scam has led to the arrest of 215 people in a $232 million scheme, where a popular YouTuber with 620,000 followers allegedly lured thousands into investing in near-worthless tokens.
The Gyeonggi Southern Provincial Police Agency reported that the scheme, active from late 2021 to March 2023, targeted over 15,000 victims—primarily middle-aged and elderly individuals—by promising returns of up to 20 times their investments.
According to Yonhap, victims were allegedly encouraged to sell property or take out loans to fund purchases of 28 different tokens, six of which were created by the group, while the remaining tokens had minimal trading volume and were deemed of little value.
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Among those detained, 12 remain in custody, including the YouTuber identified only as Mr. A, who allegedly led the fraudulent operation through a fake investment consulting firm. Police said the YouTuber initially fled South Korea, traveling through Hong Kong and Singapore before reaching Australia, but has since been detained.
This large-scale arrest comes as South Korea intensifies efforts to curb digital asset crime. In October, Deputy Prime Minister and Finance Minister Choi Sang-mok announced plans for a virtual asset transaction monitoring system to enhance transaction integrity, especially in light of concerns over stablecoins like Tether.
Related: Indonesia Publishes List of 29 Licensed Crypto Exchanges for Trading
The government aims to mandate reporting of cross-border stablecoin transactions to combat illegal foreign exchange activities, corporate tax evasion, and money laundering linked to digital assets.
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