'Celebrity Endorsement and 2000% Profit Guarantee'... 10.5 Billion Won Coin Scam Gang Referred to Prosecution

[Asia Economy Reporter Seongpil Jo] A group that manipulated the price of a specific coin listed on one of the four major domestic exchanges to embezzle over 10 billion KRW has been handed over to the prosecution.

Seoul Metropolitan Police Agency Photo by Yonhap News

The Seoul Metropolitan Police Agency announced on the 22nd that they have referred 30 individuals, including Mr. A, to the prosecution on charges of fraud, and two of them have been sent to detention. According to the police, from September to November 2021, they deceived victims through coin leading chat rooms by guaranteeing up to 2000% high returns, inducing them to purchase specific coins, and then sold the coins when the price surged, embezzling approximately 10.5 billion KRW.

Police investigations revealed that the coin foundation used a famous domestic celebrity as an advertising model for marketing and entered into a consignment contract with the coin leading chat room organization to manipulate prices in exchange for paying half of the sales revenue. Furthermore, foundation officials directly participated in the leading chat rooms, monitoring victims’ virtual asset purchase timings and sharing the criminal activities with the leading chat room organization.

The police collected nearly 100 cases of damage nationwide and launched an investigation. The police explained that this case is the first instance of a virtual asset foundation listed on one of the four major domestic exchanges conspiring with a leading chat room organization to manipulate prices. During the investigation, the police seized approximately 1.25 billion KRW presumed to be proceeds from the damage and froze the accounts of the coin foundation officials held at virtual asset exchanges.

The police plan to continue preventive measures against operating coin leading chat rooms or impersonating virtual asset experts to encourage virtual asset purchases, and will immediately initiate investigations upon receiving reports of suspicious criminal cases. A police official urged, "If phrases such as 'principal guarantee' or 'high return guarantee' are used during investment solicitation, there is a high possibility of fraud, so special caution is required."

This content was produced with the assistance of AI translation services.