South Korean Youtuber Arrested for Allegedly Masterminding $213 Million Crypto Fraud

• A South Korean YouTuber and his network allegedly defrauded 15,000 investors out of 300 billion won.
• The group impersonated government agencies, manipulated markets, and preyed on vulnerable investors with promises of financial recovery.
• Police seized millions in assets, including 22 Bitcoins, by tracking accounts tied to the operation.

In South Korea, a popular YouTuber with over 620,000 followers was recently arrested and accused of masterminding a massive crypto fraud operation that defrauded thousands of investors.

The Gyeonggi Southern Provincial Police Agency’s Anti-Corruption and Economic Crime Investigation Unit detained 215 individuals connected to the scheme, which reportedly took in nearly 300 billion won (about $213 million).

The Scheme and Targets

The YouTuber allegedly used his platform  to gain followers’ trust by initially offering stock market advice, later expanding into crypto investments through his holding company and a network of semi-investment consulting firms.

His group reportedly targeted nearly 15,000 individuals, many of whom had previously suffered losses in stock and crypto investments.

Posing as representatives from South Korea’s Financial Supervisory Service and other official agencies, the group made unsolicited calls promising to help these individuals recover their lost investments.

The operation included a web of 15 distinct organizations with specific roles, such as manipulating stock and crypto prices, issuing tokens, laundering money, and collecting personal data to issue fraudulent loans.

The group reportedly impersonated government representatives using fake business cards and IDs, enticing many to make large investments.

Arrests and Asset Seizures

Following an investigation launched in February 2023, police tracked over 1,400 accounts connected to the fraudulent scheme.

The authorities ultimately seized 22 Bitcoins, valued at over 47.8 billion won ($34.1 million), linked to the group’s crypto wallets and transactions.

The main orchestrator reportedly fled South Korea to avoid arrest, traveling to Australia via Hong Kong and Singapore, but was eventually detained by authorities.

Growing Crypto Fraud in South Korea

This case has been described as one of South Korea’s largest crypto-related frauds, highlighting the risks facing the crypto industry.

With the rapid development of the digital asset space, fraud has also increased, with perpetrators leveraging online influence to reach vulnerable and often elderly investors.

Authorities continue to crack down on these schemes, underscoring the need for heightened security and awareness among digital asset investors.