South Korean Authorities Bust Large-Scale Crypto Scam
South Korean authorities have made 25 arrests in connection with a multi-million dollar crypto scam, according to a recent report. The Daegu Police Agency led the operation, targeting an organization that promised high returns to investors through a high-yield investment program between August 2020 and June 2021.
Uncovering The Layers Of Crypto Deception
The fraudulent operation used social networking services and multi-level marketing companies to deceive over 4,000 individuals with promises of lucrative profits. On November 6, law enforcement officials arrested the suspects, including the CEO of a crypto firm and a high-ranking official of a multi-level marketing company, both involved in orchestrating the $14 million fraud.
The scammers delisted the crypto exchange after accumulating a large sum, leaving investors at a loss. They also controlled the value of the crypto on the exchange in a sophisticated price manipulation strategy.
A police official warned investors to be careful when investing due to potential price manipulation by powerful entities.
Efforts To Recoup And Justice For Victims
Prior to the arrests, police recovered roughly $7.2 million of the victims’ investments. With 25 individuals indicted, the investigation will focus on additional illegal activities related to the digital currency’s listing and delisting on the domestic exchange.
Additionally, last week, the US Attorney’s Office initiated legal proceedings to seize $54 million in crypto assets associated with a darknet-based narcotics distribution operation.
The legal process resulted in the confiscation of about 30,000 Ethereum (ETH) linked to unlawful activities.
Hot Take: Crackdown on Crypto Scams Continues
The crackdown on crypto scams continues as South Korean authorities disrupt a large-scale fraud scheme, highlighting ongoing efforts to protect investors from deceptive practices in the digital currency space. It’s essential for investors to remain vigilant and cautious when approached with promises of high returns or investment opportunities that seem too good to be true.
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