South Korean Police Arrest 215 People in $228M Cryptocurrency Investment Scam

South Korean police have arrested 215 individuals in connection with the largest cryptocurrency investment scam in the country’s history, involving the theft of 320 billion won ($228.4 million).

The arrests were made by the Gyeonggi Southern Provincial Police Agency’s Anti-Corruption and Economic Crime Investigation Unit, which identified the suspects as staff members from a fraudulent investment consulting firm and an unnamed YouTuber with 620,000 subscribers. Gyeonggi is a province surrounding the capital, Seoul.

The Gyeonggi Nambu Provincial Police reported on Wednesday that among those arrested was the alleged mastermind behind the organized crime group. This group is accused of selling 28 types of virtual tokens to approximately 15,000 people, with promises of high returns between December 2021 and March of the previous year. The scheme predominantly targeted middle-aged and older individuals, offering them 20x returns and encouraging them to sell their homes and take out loans to invest.

According to police, the group issued six of the 28 tokens on overseas crypto exchanges, with a team of market makers working to artificially inflate their prices. The remaining 22 tokens had low trading volumes and were deemed to have little to no value.

Twelve individuals, including the YouTuber who also led the consulting firm, remain in detention. The YouTuber initially fled South Korea, traveling through Hong Kong and Singapore before reaching Australia.

The report did not disclose the identities of those involved. The South Korean police have labeled the tokens sold by the group as "worthless." The organization set up consulting companies and sales teams to promote and sell the virtual assets to people who had subscribed to the YouTube channel.