South Korean authorities have apprehended two individuals in connection with a cryptocurrency scam that defrauded a senior citizen of 5.5 billion won ($4.1 million). The Haeundae Police Station in Busan, South Korea, disclosed that the suspects, aged in their 20s and 30s, were detained for deceiving the elderly victim and orchestrating the theft through a series of fraudulent transactions.
The scheme, which unfolded between September and December 2022, lured the victim with promises of substantial returns on cryptocurrency investments. The fraudsters, exploiting the cryptocurrency boom, guaranteed a remarkable 70% profit within a month for an investment of 1 billion won. The victim, enticed by the prospect of high earnings, transferred a total of 5.5 billion won across six transactions to the perpetrators.
To further perpetrate the deception, the scammers fabricated balance certificates to feign evidence of investments. They presented the victim with counterfeit balance sheets showcasing purported cryptocurrency holdings and real estate contracts. However, investigations by South Korean law enforcement revealed that none of the victim’s funds had been utilized for cryptocurrency trading, despite the fictitious documentation indicating otherwise.
While the police acted swiftly to detain the fraudsters, efforts to recover the misappropriated funds are ongoing. The incident underscores the risks associated with fraudulent schemes in the cryptocurrency space and highlights the importance of vigilance and due diligence when engaging in investment activities.
In a separate development, Do Kwon, co-founder of Terraform Labs, a prominent figure in South Korea’s cryptocurrency industry, was recently released from prison in Montenegro. Kwon, who faces legal charges related to the collapse of the Terra ecosystem in 2022, was detained amid extradition requests from both the United States and South Korea. His release followed the conclusion of his regular prison term for travel-related offenses. However, the decision on his extradition remains pending, pending a review by the Council of the Supreme Court, which will determine his fate.
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