Massive Crypto Scam Busted: 215 Arrested in $228 Million Scheme

South Korean police have apprehended 215 individuals suspected of orchestrating one of the largest cryptocurrency fraud schemes, amounting to approximately $228.4 million.

Among those detained is the alleged ringleader, referred to as “Mr. A,” who had been hiding in Australia but was apprehended and extradited to South Korea. Authorities have already confiscated 22 bitcoins from Mr. A and are currently working to seize additional assets valued at around $34 million. Of the arrested individuals, only 12 remain in custody.

The criminal group reportedly sold 28 types of virtual tokens to around 15,000 victims, luring them with promises of significant returns. Six of these tokens were listed on foreign cryptocurrency exchanges, where a team of market makers artificially inflated their prices. Police emphasized that all of the tokens were entirely worthless.

Furthermore, the fraudsters amassed personal data, including nearly 9 million phone numbers, through digital advertising and data theft. The stolen information was subsequently used to create fake loan agreements.

To attract victims, the group established consulting firms and sales teams. Virtual assets were marketed through a YouTube channel that heavily promoted “profitable” investment opportunities. This persuasive campaign convinced individuals to invest money with the promise of high returns. The scheme predominantly targeted middle-aged and elderly individuals, who were more susceptible to promises of quick wealth.