South Korean authorities have taken action against two alleged crypto scams that defrauded victims out of a staggering $350 million.
One case involves a virtual fashion items marketplace where 435 victims were tricked into losing $333 million. The CEO and Vice President of the marketplace have been indicted on fraud-related charges.
The scam operated as an online P2P site, promising investors returns of 3-16% within 1-5 days. The operators employed a pyramid system and created fake listings for virtual fashion items. These included “virtual” dresses as well as traditional Korean and Japanese attire, such as hanbok and kimono pieces.
In a separate case, investors reportedly lost $27 million in a suspected crypto scam based in Gangnam. The alleged fraudster, surnamed Gu, has been prohibited from leaving the country. He claimed his company was reputable and dependable, but police have taken action against him.
A recent study has uncovered a surge in South Korean crypto scams specifically targeting young women on social media platforms. Additionally, last week, police arrested a crypto scammer who was targeting housewives and office workers.
These incidents underscore the prevalence of crypto scams in South Korea, prompting further investigation by the authorities.
