Police dismantled a fraudulent cryptocurrency mining scheme worth 16 billion KRW – How was the mastermind caught?

South Korean Police Bust $16 Billion KRW Crypto Mining Scam

The South Korean police have announced the arrest of 14 individuals involved in a fraudulent cryptocurrency mining scheme that generated a staggering 16 billion South Korean won, approximately 12.1 million USD. The whole operation came to light following 21 complaints from deceived investors. The scammers were apprehended after a thorough investigation that led to the arrest of the mastermind, known as „Mr. A,” along with three other accomplices in September 2023.

„Mr. A” Evaded Capture for 10 Months, Finally Caught after Plastic Surgery Operations

Following his failure to appear for questioning before the trial, „Mr. A” evaded capture for a lengthy 10 months. Surprisingly, he was eventually apprehended in July 2024 after a series of plastic surgery operations, during which he spent around 15,900 USD to alter his appearance to avoid detection by authorities.

Financial Frauds and Methods Employed

During the investigation, it was revealed that „Mr. A” employed sophisticated evasion methods, such as using multiple mobile phones, frequently changing residences, and conducting transactions using different bank accounts. Additionally, he utilized a partner employed in a law firm to purchase and withdraw cryptocurrencies, making it harder for law enforcement to trace.

Police Seize Large Sums of Money and Assets

During the police operation, a total of 100 million South Korean won in cash and assets worth 1.3 billion KRW were confiscated, significantly disrupting the scammers’ cryptocurrency market operations.

Knife Attack on Haru Invest CEO and Other Reports from the Crypto Market

Unusual events related to cryptocurrency fraud have also been reported in other Asian countries. Recently in South Korea, there was a knife attack on Hyungsoo Lee, the CEO of the cryptocurrency platform Haru Invest, who stands accused of embezzling a staggering 826 million USD in cryptocurrency.

In India, the cryptocurrency exchange CoinSwitch announced plans to file a lawsuit against the competitor WazirX to recover around 9.6 million USD, which got frozen as a result of a 230 million USD massive cyberattack in July this year. Meanwhile, WazirX is seeking a six-month moratorium on obligations in the Singapore court to undergo restructuring.

Combatting Cryptocurrency Scams

Intensive efforts are ongoing worldwide to combat fraud in the cryptocurrency market. In Malaysia, the police recently dismantled a fraudulent cryptocurrency hotline predominantly operating in Japan through popular dating apps like Tinder. Meanwhile, authorities in the Philippines have arrested 99 individuals for deceiving victims by impersonating wealthy individuals or models and posting fake content to defraud money.