South Korean authorities have arrested 215 individuals in connection with the country’s largest-ever cryptocurrency investment scam, valued at approximately $228.4 million. The Gyeonggi Nambu provincial police announced on Wednesday that the arrests included the alleged mastermind, identified as “Mr. A,” who had fled to Australia before being extradited to South Korea.
The criminal ring is accused of selling 28 types of virtual tokens to around 15,000 investors, promising high returns. Police have seized 22 bitcoins from Mr. A’s accounts and are working to secure an additional $34 million in assets. Currently, 12 of the arrested individuals remain in custody.
The operation allegedly used six of the 28 tokens, described by authorities as “worthless,” on overseas crypto exchanges. The scam involved “market makers” who manipulated token prices, as well as fraudulent loans taken out with personal information obtained from nearly nine million phone numbers.
The organization set up consulting companies and sales teams, targeting primarily middle-aged and elderly victims who had subscribed to a YouTube channel with hundreds of thousands of followers.