Authorities Arrest 215 Individuals in Major Cryptocurrency Fraud Case

215 People Arrested

The Anti-Corruption and Economic Crimes Investigation Unit of the Gyeonggi Southern Provincial Police has detained 215 individuals involved in a cryptocurrency scam that affected over 15,000 people. Recently, police also thwarted another scheme involving $1.6 million in Bitcoin mining fraud.

The arrested fraudsters collected money from investors through fake investment consultancy firms operated by an individual with 620,000 subscribers on YouTube. Over two and a half years, 12 people were arrested for financial crimes. By promising returns of up to 20%, these scammers gained the trust of investors. They exploited the complexity of cryptocurrencies, luring naive victims with promises of massive monthly gains, often exceeding daily returns of 1%.

Arrest of the Ringleader

In addition to the $234 million obtained from the fraud, authorities seized 22 Bitcoins held by the criminals. The ringleader was apprehended by police on November 13 while attempting to flee to Australia. Following the incident, law enforcement warned the public to be wary of high return promises.

Last year, we highlighted the potential for significant surges in cryptocurrency investments and the various tactics scammers could use to empty wallets. Victims are often deceived by incredible-sounding ideas, such as cloud mining and trade profit-sharing, that should be viewed with skepticism. They will continue to hunt for victims in the coming days, and it is crucial to remember these warnings before falling prey.

Such incidents further emphasize the need for regulation in cryptocurrency markets and the importance of educating investors. Conducting thorough research and seeking information from reliable sources before investing is vital.