Two individuals in their 20s and 30s were captured by South Korean law enforcement for scamming an elderly man out of 5.5 billion won ($4.1 million) through fake cryptocurrency investments. The Haeundae Police Station in Busan, South Korea, disclosed that the victim fell victim to promises of high returns on crypto investments from September to December 2022. The swindlers assured the victim of 70% profits for a monthly investment of 1 billion won. The victim ended up handing over a total of 5.5 billion won in six transactions, which the scammers used to fabricate balance certificates as proof of investment. Despite the victim’s funds not being transferred to any cryptocurrency trading account, the scammers presented fake balance sheets showing 20 billion won in cryptocurrency.
While the fraudsters have been apprehended by the authorities, details about the recovery of the funds have not been made public. In a separate incident, Do Kwon, co-founder of Terraform Labs and a prominent figure in South Korea’s crypto scene, was reportedly released from prison in Montenegro after facing extradition requests from the US and South Korea. Kwon is currently under scrutiny for his alleged role in the collapse of the Terra ecosystem in 2022. The decision to release Kwon was reportedly made by the Supreme Court Council, which is expected to rule on whether to extradite him to South Korea.
In another development, four employees of South Korean crypto exchange Coinone have been indicted for allegedly using illegal tactics to generate profits exceeding $2.26 million during coin listings from various projects. The crypto industry in South Korea is facing increased scrutiny, with Worldcoin also under investigation over privacy concerns.