Although bitcoin prices plummeted over the weekend, the overall bull run remains alive, as does South Korea’s crypto-related fraud cases. The latest figures from the domestic financial watchdog show that such incidents are still on the rise.
Police appoint a special unit to investigate crypto fraud
According to Asia Kyungjae, the Financial Supervisory Service (FSS) has revealed that crypto fraud reports skyrocketed by more than 41.6% annually.
The statistics from the FSS from January to October 2020 show that the 41.6% increase belongs to 555 cases of suspicious transactions.
Due to the significant increase in the number of cases, police pledged to step up efforts to combat crypto-related fraud rings across the country. In fact, the authorities have set up a special investigation team in the financial crime department in county offices.
The agencies involved in the investigation into crypto fraud include the Financial Services Commission, the Financial Supervision Office, the State Affairs Coordination Office, the Ministry of Justice, the Public Prosecution Service and the National Police Agency.
South Korean fraudster found guilty of $ 16 million defrauding
In addition, Yonhap reported another millionaire crypto fraud case in South Korea as a fraudster named by the court just as Lee was sentenced to six years in prison. He was found guilty of setting up a scheme that defrauded about 1,300 people in just seven months.
Prosecutors said he took approximately $ 16 million in crypto and fiat from victims. Judge Cho Sang-min revealed details of the case:
The defendant deceived the victims by saying they could make big profits in a short time and sold virtual currency issued by an intangible Chinese company.
Lee implemented his fraud plan between October 2018 and May 2019, attracting investors by telling them, “If you buy cryptocurrency sold by a Chinese parent group, you can make huge profits.”
However, the fraudster became even more suspicious after claiming that the Chinese company he was promoting “is a solid company with a 30-year history of 500 trillion won and plans to enter the electric car industry with an investment of 4 trillion won” .
The court also sentenced two of Lee’s henchmen to 18 months and eight months in prison for participating in the crypto fraud ring.
What do you think about the bullish trend in South Korea’s reported crypto fraud cases? Let us know in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or invitation to an offer to buy or sell, or a recommendation or endorsement of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.