South Korean authorities have busted a sophisticated cryptocurrency scam ring that defrauded dozens of victims by posing as financial experts and promising lucrative returns.
The Jeju Metropolitan Police Agency announced the arrest of 25 suspects linked to four separate criminal organizations orchestrating the elaborate scheme, according to local media outlet YNA.
Scammers lure victims to throw money into fraudulent tokens
The fraudsters set up call centers masquerading as legitimate investment advisory firms, targeting unsuspecting individuals between June 2023 and April 2025.
Victims were convinced to register accounts on fake cryptocurrency exchanges, lured by promises of compensation for losses or guaranteed profits from tokens falsely advertised as “about to be listed.”
To build trust, scammers manipulated online dashboards to display fake profits, making it appear as though victims’ accounts had been credited with substantial cryptocurrency gains.
These fabricated returns were used to pressure victims into making even larger investments.
But when they attempted to withdraw their supposed profits, their requests were either endlessly delayed or ignored.
In most cases, the fraudsters disappear with the funds. The operation allegedly led to losses totaling nearly 737 million won from at least 28 victims within the 2 years of operation.
Scammers face further legal actions
Of the 25 individuals arrested, 20 are currently in custody while the remainder face further legal action.
Charges include organizing and operating a criminal group, as well as violating the Telecommunications Financial Fraud Victim Refund Act.
Authorities believe there may be additional victims who have not yet come forward and are actively pursuing higher-level operators involved in the scam.
The police are urging the public to remain vigilant against unsolicited investment advice and to thoroughly verify the legitimacy of any crypto platforms or advisors before making transactions.
The crackdown comes as all three South Korean presidential hopefuls have recently expressed support for Bitcoin ETFs and greater institutional investment in crypto, signaling a significant policy shift in the country’s approach to digital assets.