South Korean authorities have successfully dismantled a large-scale crypto investment scam ring that targeted unsuspecting victims by posing as financial experts and promising lucrative returns. According to reports from local media outlet yna, the Jeju Metropolitan Police Agency has arrested 25 individuals associated with four separate criminal organizations involved in the elaborate scheme.
The fraudsters operated call centers that masqueraded as legitimate investment advisory services, deceiving victims into believing they were dealing with cryptocurrency professionals or team leaders from fake firms. Between June 2023 and April 2025, the scammers managed to swindle nearly 734 million won (approximately $540,000 USD) from at least 48 victims.
Victims were lured into registering on counterfeit crypto exchanges with promises of compensation for losses or the opportunity to earn significant returns by purchasing tokens that were falsely touted as being on the brink of listing. To gain the trust of their targets, the scammers displayed fake profits in the victims’ online accounts, manipulating dashboards to make it appear as though cryptocurrency assets had been credited. These fabricated gains were used to persuade victims to make larger investments.
When victims attempted to withdraw their funds, their requests were either delayed indefinitely or ignored altogether. In most cases, the fraudsters absconded with the funds, leaving the victims at a loss. The authorities have taken 20 of the arrested individuals into custody, while the remaining five are facing further legal action on charges including organizing and operating a criminal group and violating the Telecommunications Financial Fraud Victim Refund Act.
While the investigation is ongoing, the police believe there may be additional victims who have yet to come forward. Efforts are underway to identify and apprehend higher-level operators involved in the scam. The public is advised to exercise caution when receiving unsolicited investment advice and to verify the legitimacy of crypto platforms and advisors before engaging in any transactions.
In a separate development, all three major South Korean presidential hopefuls have expressed their support for Bitcoin ETFs and institutional investment in cryptocurrency, signaling a significant policy shift in the country. This endorsement comes ahead of the upcoming June 3rd election and could have far-reaching implications for the crypto industry in South Korea.
The crackdown on the crypto scam rings demonstrates the authorities’ commitment to protecting investors and maintaining the integrity of the financial system. By holding perpetrators accountable and raising awareness about the dangers of fraudulent schemes, South Korea aims to foster a safer and more transparent environment for cryptocurrency transactions.