South Korean Police Capture Fraudsters Who Stole $4.1 Million in Crypto Investment Scam

South Korean authorities have successfully apprehended a duo of fraudsters who orchestrated a sophisticated cryptocurrency investment scam that resulted in the theft of $4.1 million (approximately 5.5 billion South Korean won). 

The fraudulent scheme, which targeted a senior citizen, promised lucrative returns on cryptocurrency investments within a short period.

The Haeundae Police Station in Busan, South Korea, spearheaded the operation that arrested two individuals in their 20s and 30s. These fraudsters exploited the victim’s trust by offering enticing guarantees of substantial profits on cryptocurrency investments. 

They falsely assured the victim of a 70% return on a monthly investment of 1 billion South Korean won and promised to multiply the principal amount by 1.7 billion won within a month.

“It’s a boom period for coin (cryptocurrency). If you invest 1 billion won, I will call it 1.7 billion won a month later,”

A Well-Planned Scam of 4.1 Million Dollars

Over several months, between September and December 2022, the scammers successfully convinced the victim to part ways with 5.5 billion won in six separate transactions. 

The fraudsters went to great lengths to bolster their deception, fabricating fake balance certificates and forging documents to create an illusion of substantial investment returns. 

They even presented the victim with counterfeit balance sheets showcasing purported cryptocurrency holdings worth 20 billion won, despite none of the victim’s funds making it to any legitimate trading accounts.

The complexity of the scam became apparent during investigations, revealing the perpetrators’ use of intricate tactics to manipulate and defraud the victim. 

The fraudsters employed a combination of fraudulent documents and persuasive promises to entice the victim into investing significant sums in cryptocurrency ventures that ultimately failed to deliver on their lofty promises.

Despite the perpetrators’ successful arrest, details regarding the recovery of the stolen funds have not been disclosed to the public. Authorities remain committed to ensuring justice for the victim and holding the fraudsters accountable for their actions.

Do Kwon’s Evasion Of $40 Billion Terra Ecosystem Collapse

In a separate but related development within South Korea’s cryptocurrency landscape, attention has also been drawn to Do Kwon, a prominent industry figure and co-founder of Terraform Labs. 

Kwon’s recent release from prison in Montenegro has sparked renewed interest in his legal troubles, which stem from the collapse of the Terra ecosystem in 2022.

Kwon faces allegations of fraud and tax evasion related to the Terra ecosystem’s collapse. 

“We released Do Kwon from prison as his regular prison term for traveling with fake papers ended. Since he is a foreign citizen and his documents were withheld, he was taken for an interview to the police directorate for foreigners, and they will deal with him further.”

said Prison director Darko Vukcevic.

Authorities in the United States and South Korea are pursuing legal action against him. Despite attempts to evade prosecution, Kwon was apprehended and now faces trial in Manhattan federal court. 

However, his release from prison in Montenegro raises questions about potential extradition to South Korea, where authorities are keen to see him prosecuted for his alleged offenses.

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