South Korean police have apprehended two people who were involved in a 5.5 billion won ($4.1 million) cryptocurrency scam. The scammers, who were in their 20s and 30s, went after senior citizen by offering them significant profits on cryptocurrency purchases.
Following claims of fraud, the Haeundae Police Station in Busan, South Korea, made the arrests. The victim was told that if they invested 1 billion won in cryptocurrency between September and December 2022, they would make 70% a month.
Cryptocurrency Scam Unveiled
Even though the victim gave the suspect an amount of 5.5 billion won in six trades, it was later found that the money was not used for cryptocurrency trading. Instead, the scammers made fraudulent balance papers to make it look like the investments were performing successfully.
It was said that the forged balance sheets showed 20 billion won worth of cryptocurrency assets, but the victim’s money was never put into any trade accounts. The exact situation with the fund return has not been made public.
Do Kwon, co-founder of Terraform Labs and a well-known figure in South Korea’s cryptocurrency business, was freed from prison in Montenegro on Mar. 23. The breakdown of the Terra ecosystem in 2022 is being investigated by the courts, and extradition requests from both the US and South Korea continue to be processed. Darco Vukcevic, the prison director stated over the phone that:
Do Kwon was released as his sentence for using fraudulent documents concluded. Being a non-national and due to the confiscation of his documents, he was escorted to the police department for foreigners for further proceedings.
The Supreme Court Council allegedly decided to free Kwon. They will further presumably decide whether to extradite him to South Korea. Several lawsuits are still going on in the cryptocurrency industry, and four Coinone workers have been charged with utilizing illegal methods to make money from listing coins.
