In South Korea, a recent case of fraud has highlighted the dangers faced by investors in the cryptocurrency market. Two individuals, aged in their 20s and 30s, were apprehended by the Haeundae Police Station in Busan for their involvement in a scam that resulted in the loss of 5.5 billion South Korean won (approximately $4.1 million) for a senior citizen.

South Korean police docks criminals for $4.1 million scam

The fraudulent activities spanned from September 2022 to December 2022, during which the perpetrators targeted the victim with promises of high returns on cryptocurrency investments. Exploiting the boom in the cryptocurrency market, they guaranteed a 70% profit within a month for a monthly investment of 1 billion won.

The fraudsters confidently stated that It was a boom period for cryptocurrency. If traders invest 1 billion won, they can have 1.7 billion won a month later. Believing in these promises, the victim fell victim to the scam and transferred a total of 5.5 billion won in six transactions to the fraudsters’ accounts. To add credibility to their scheme, the scammers created fake balance certificates.

These fake certificates showed holdings of 20 billion won worth of cryptocurrencies and purported real estate contracts. However, investigations revealed that none of the victim’s funds were invested as claimed by the fraudsters. The Haeundae Police Station took swift action, detaining the perpetrators and initiating legal proceedings.

Regulatory vigilance and investor awareness

Details regarding the recovery of the defrauded funds have not been publicly disclosed. In another development related to the cryptocurrency industry, Do Kwon, co-founder of Terraform Labs, made headlines as he was released from prison in Montenegro. This development comes amidst extradition requests from both the United States and South Korea.

The extradition requests are stemming from legal issues surrounding the collapse of the Terra ecosystem in 2022. The decision regarding Kwon’s extradition remains pending, with the Council of the Supreme Court reviewing the case. These incidents serve as a reminder of the risks associated with fraudulent schemes targeting individuals in the cryptocurrency sector.

It underscores the importance of investor education, due diligence, and regulatory measures to protect investors from falling victim to such scams. As the cryptocurrency market continues to evolve, authorities and investors alike must remain vigilant and take necessary precautions to safeguard against financial fraud and misconduct.

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