Real money magnets, cryptocurrencies never stop attracting individuals in search of fortune throughout the world. Credulous for the most of them, they end up paying the price for scams hatched from scratch by individuals hungry for easy money. This is particularly the case in South Korea where statistics show that fraud linked to cryptocurrencies increased in 2020. Faced with this observation, the country’s authorities have decided to act differently to eradicate the evil.
Creation of a special unit to investigate cryptocurrency fraud
According to the statistics of the last report of the FSS (Financial Supervisory Service), cryptocurrency fraud increased 41.6% in one year. These are the results of an investigation identifying the various cases reported over the period from January to October 2020. With 555 cases of suspicious transactions, cryptocurrency fraud has never claimed so many victims in the country. This most worrying situation has therefore led the police authorities to change their shoulders to reverse the trend.
They plan to increase efforts to repression by creating a special unit dedicated to these types of fraud. This unit will be attached to the one dealing with financial crime in the provincial offices according to the first details that have been given. These include the Financial Services Commission, the Financial Supervision Service, the Public Affairs Coordination Office, the Prosecutor’s Office and the National Police Agency.
South Korean defrauds $ 16 million in cryptocurrency fraud
One of the most famous cases illustrating the resurgence of cryptocurrency fraud in the country is undoubtedly the one mounted by Mr. Lee. With $ 16 million in cryptocurrency and fiat taken from 1,300 victims in seven months, the latter was found guilty of fraud by a court in the country. He was luring his victims by promising them big returns in a short period of time if they invested in a cryptocurrency allegedly sold by a big Chinese company.
In particular, he presented this one to them as “A solid company with a 30-year track record of 500 trillion won and which plans to enter the electric vehicle industry with an investment of 4 trillion won”. The judge Cho Sang-min in charge of the case sentenced him to six years in prison. These two accomplices were punished with respective sentences of 18 months and 8 months in prison for their participation in the fraud.
South Korea is far from being an isolated case in terms of the increase in cryptocurrency fraud. In the Crypto Crime Report 2021, Chainalysis was already sounding the alarm on the situation of these scams, the number of individual victims of which has increased by 48% worldwide.
The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.