Fraudsters in crypto Promised 70% Returns on 1 Billion Won Investment, Swindling 5.5 Billion Won Across Six Transactions

South Korean authorities have apprehended two individuals for defrauding a senior citizen of $4.1 million (5.5 billion won) through promises of lucrative cryptocurrency investments.

The Haeundae Police Station in Busan, South Korea, detained a pair in their 20s and 30s, respectively, following investigations into the fraudulent scheme. The duo allegedly convinced the victim to invest 1 billion won monthly between September 2022 and December 2022, assuring returns of 70%.

The victim transferred a total of 5.5 billion won across six transactions to the scammers, who provided falsified balance certificates as supposed evidence of the investments. These documents purportedly showed cryptocurrency holdings worth 20 billion won, despite none of the victim’s funds being used for actual crypto trading.

Also, read- Top 8 Ways Web3 Security Can Resolve The Crisis Of Cryptocurrency Scams

The fraudsters also presented fake balance sheets and real estate contracts during the scam. While the police have successfully detained the perpetrators, details regarding the recovery of the stolen funds have not yet been disclosed.

In other news related to the cryptocurrency sector in South Korea, Do Kwon, co-founder of Terraform Labs, was reportedly released from prison in Montenegro on March 23. Kwon faces legal charges concerning the 2022 crash of the TerraUSD and LUNA ecosystems, with extradition requests from both the United States and South Korea pending. The decision on Kwon’s extradition will be reviewed by the Council of the Supreme Court, with significant implications for his legal proceedings in South Korea.