South Korean Police Nab Crypto Con Artists Who Swindled Elderly Victim for $4.1 Million

South Korean police have apprehended two fraudsters who swindled 5.5 billion won ($4.1 million) from an elderly citizen with the allure of lucrative cryptocurrency investments. Promising unrealistic returns, the scammers deceived the victim into making multiple transactions, forging evidence to support their claims. The victim invested a staggering total of 5.5 billion won, but the fraudsters embezzled the funds, leaving no trace of their cryptocurrency investments. The arrest of the suspects follows the recent release of Do Kwon, the infamous co-founder of Terraform Labs, from prison in Montenegro as his extradition case proceeds.

South Korean Police Apprehend Crypto Fraudsters Who Defrauded Elderly Victim of $4.1 Million

Busan, South Korea - Authorities in the Haeundae Police Station of Busan, South Korea, have arrested two individuals in connection with a cryptocurrency investment scam that defrauded a senior citizen of over 5.5 billion won (approximately $4.1 million).

According to official reports, the victim, whose identity has not been disclosed, was lured into the fraudulent scheme between September 2022 and December 2022. Allegedly, the perpetrators promised lucrative returns on cryptocurrency investments, guaranteeing a 70% profit on a monthly investment of 1 billion won ($760,000).

"It's a boom period for coin (cryptocurrency)," the fraudsters are quoted as saying. "If you invest 1 billion won, I will call it 1.7 billion won a month later."

The victim subsequently deposited 5.5 billion won into the scammers' accounts through six separate transactions. To maintain the illusion of legitimate investments, the fraudsters fabricated balance certificates purporting to represent the victim's crypto portfolio.

During the course of the scam, the victim was presented with forged balance sheets showcasing substantial cryptocurrency holdings and real estate contracts. However, investigations by the South Korean police revealed that none of the victim's funds were actually invested in any crypto trading accounts, despite the fake balance sheet indicating a value of 20 billion won ($15.2 million).

While the authorities have swiftly apprehended the suspects, the status of the stolen funds remains uncertain. The police have disclosed no information regarding the recovery of the victim's assets.

This incident underscores the prevalence of cryptocurrency-related scams, particularly targeting vulnerable populations like senior citizens. It is crucial for investors to exercise caution when considering crypto investments and to thoroughly research any potential investment opportunities before committing any funds.

Do Kwon's Release from Montenegrin Prison Raises Extradition Concerns

Meanwhile, in a separate development related to the cryptocurrency industry in South Korea, Do Kwon, the co-founder of the collapsed Terraform Labs, was reportedly released from prison in Montenegro on March 23. Kwon is facing extradition requests from both the United States and his native South Korea for his alleged role in the collapse of the Terra ecosystem in 2022.

"We released Do Kwon from prison as his regular prison term for traveling with fake papers ended," explained Darko Vukcevic, director of the prison where Kwon was detained. "Since he is a foreign citizen and his documents were withheld, he was taken for an interview to the police directorate for foreigners, and they will deal with him further."

Kwon's release was reportedly sanctioned by the Council of the Supreme Court, which is expected to review a decision regarding his potential extradition to South Korea. The outcome of this extradition process remains to be determined.