Crypto fraud in South Korea surged 41% in 2020

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Latest figures by domestic financial watchdog in South Korea show that crypto related fraud cases in the country are on the rise. In fact, they have skyrocketed the past year.

Numbers revealed by the Financial Supervisory Service (FSS) point to an overwhelming increase of 41.6% in 2020. These statistics are from January to October last year, and show that the increase belongs to 555 cases of suspicious transactions.

One such case is of millionaire crypto fraud where a fraudster named Lee was given a six-year jail term by the court after he was found guilty of having built a scheme that scammed some 1,300 people in just seven months.

He took around $16 million worth in crypto and fiat from the victims. His modus operandi was attracting investors with the delusion that they could make enormous profits by buying cryptocurrency sold by a Chinese parent group.

He promoted the company as a solid business with a 30-year history of 500 trillion won, one which wanted to enter the electric vehicle industry with an investment worth 4 trillion won.

Classic!

The court also handed eighteen-month and eight-month sentences to two of his accomplices.

Due to the significant rise of such cases, the South Korean police has promised to increase its efforts in cracking down crypto related fraud rings across the nation. In fact, authorities have launched a dedicated investigation team at the financial crime unit in provincial offices.

And a number of bureaus are involved in crypto fraud investigations, including the Financial Services Commission, the Financial Supervisory Service, the State Affairs Coordination Office, the Ministry of Justice, the Prosecutors’ Office, and the National Police Agency.

The way it should be done.


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