Gang Arrested for Defrauding 5.4 Billion KRW by Promising "High Returns" to Members of Coin Reading Rooms

A group that set up a call center in the Seoul metropolitan area and deceived members of coin leading rooms by guaranteeing high returns, embezzling 5.4 billion KRW in investment funds, was mass arrested by the police.

A phishing organization that deceived paid members of a coin investment leading room and embezzled 5.4 billion KRW in investment funds, along with forged financial company business cards and shareholder registers. [Photo by Seoul Metropolitan Police Agency]

On the 23rd, the Seoul Metropolitan Police Agency's Metropolitan Investigation Unit and Mobile Detective Squad announced that they had booked 37 people on charges including organizing a criminal group and fraud, and 15 of them were detained.

According to the police, since November 2022 until recently, they formed a criminal organization in Seoul and Incheon areas and are accused of embezzling over 5.4 billion KRW from about 80 victims, including members of leading rooms.

Police investigation revealed that four ringleaders rented offices short-term in the metropolitan area and recruited members mainly consisting of accomplices who had previously participated in used car false listing scams, promising to return 10-30% of sales as commissions. All members were in their 20s and 30s.

The group received information about paid members from Mr. A, called the so-called 'headquarters,' and used it for their crimes. Mr. A obtained paid member information from an unidentified investment leading room under the condition of receiving 20% of the criminal proceeds as commission and passed the information to the organization. The police are investigating how Mr. A acquired the member information.

The members fabricated business cards of coin issuers and showed confidential documents under the name of virtual asset exchanges, deceiving members by saying, "We will compensate damages with coins scheduled for listing." They also impersonated securities company employees, tricking victims into believing they could earn high returns by immediately selling coins. After victims transferred investment funds to dummy accounts, the group cut off contact.

It was confirmed that they used dummy phones for business and communication to evade police tracking. The police are currently proceeding with pre-indictment seizure and confiscation procedures for the criminal proceeds embezzled by the group.

A police official stated, "Recently, similar phishing crimes have been rampant, where leading room members are approached and deceived into purchasing so-called ‘scam coins’ by promising compensation with coins scheduled for listing," and emphasized, "It should be noted that relying on unofficial investments like leading rooms, which are not financial companies officially licensed by financial authorities, can make one a target of criminal organizations' crimes."

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