South Korean Police Bust $228M Cryptocurrency Scam, Arrest 215 Suspects

South Korean police have busted a criminal ring involved in the country’s largest cryptocurrency investment scam, arresting 215 individuals suspected of stealing $228.4 million.

The Gyeonggi Nambu provincial police announced on Wednesday that among those arrested was the alleged mastermind, who had fled to Australia but was subsequently arrested and extradited. This individual is accused of orchestrating the sale of 28 types of virtual tokens to approximately 15,000 victims, promising high returns. Police have seized 22 Bitcoins from his accounts and have applied to confiscate an additional $34 million. Of the 215 individuals arrested, only 12 remain in custody.

According to the police, the group had issued six of the 28 tokens on overseas crypto exchanges and pushed up prices through a team of market makers. These tokens were “worthless”, the police said. Additionally, the criminal ring allegedly used personal information stolen through digital advertising and theft, including nearly 9 million phone numbers, to secure fraudulent loans.

The police discovered that the criminal ring established investment consulting companies and sales teams, marketing the virtual assets to followers of a YouTube channel that had garnered hundreds of thousands of subscribers. The scheme primarily targeted middle-aged and elderly victims.