South Korean Crypto Scammers Target Chat App Users
Police in South Korea have issued a warning about crypto scammers targeting users on chat app channels related to trading and investment. The Sejong South Police Station has received around 20 reports from citizens who claim to have been deceived by false or exaggerated claims made in investment “reading rooms”. These reading rooms are online chat app channels where investors gather to discuss cryptocurrencies and trading strategies. Some scammers promise guaranteed monthly gains, while others claim to be expert traders willing to share their investment secrets. Victims often join these reading rooms after seeing false advertisements on YouTube.
Rife with Scammers: South Korean Crypto ‘Reading Rooms’
South Korea’s retail crypto market is highly active, with investors congregating in chat app channels known as “reading rooms”. These rooms, found on apps like Telegram and KakaoTalk, attract hundreds of members who discuss the future of Bitcoin, altcoin prices, and other crypto-related topics. However, many of these rooms have become infested with scammers who make false promises and deceive users. Some scammers even delete messages from potential victims or remove members who expose their fraudulent activities.
- Investors regularly use chat app channels known as “reading rooms” to discuss cryptocurrencies and trading strategies.
- These reading rooms can be found on popular apps like Telegram and KakaoTalk.
- Some reading rooms have hundreds of members, with larger ones reaching up to 1,500 members.
- Scammers often make false promises of guaranteed monthly gains or claim to be expert traders sharing investment secrets.
Crypto Scammers Expanding to YouTube
According to the police, many victims fall prey to crypto scammers after seeing false and exaggerated advertisements on YouTube. These ads promise guaranteed returns of at least 500% on initial investments and claim to provide advanced crypto trading tips. Scammers operating reading rooms initially offer free services but later encourage users to join paid VIP member rooms. Once users join, they are coerced into depositing large sums of money on unlicensed crypto exchanges. Eventually, scammers disappear or refuse to return the victims’ money.
- Scammers lure victims through false and exaggerated advertisements on YouTube.
- They promise high returns and advanced trading tips.
- Victims are encouraged to join paid VIP member rooms and deposit large amounts of money on unlicensed exchanges.
- Scammers then disappear or refuse to return the victims’ money.
Hot Take: Crackdown on Crypto Scammers
The rise of crypto scams in South Korea, particularly within chat app channels, is a concerning trend for investors. Authorities have warned individuals to be suspicious of potential fraud and to avoid falling for unrealistic promises of high returns. It is essential for investors to exercise caution, conduct thorough research, and only engage with licensed and reputable platforms when participating in the cryptocurrency market. By staying vigilant and informed, you can protect yourself from falling victim to crypto scammers.
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