South Korean authorities have dismantled a sprawling crypto investment scam ring that deceived dozens of victims by posing as financial experts and promising high returns. The Jeju Metropolitan Police Agency announced the arrest of 25 individuals connected to four separate criminal organizations behind the elaborate scheme, local media outlet yna reported.
According to officials, the fraudsters operated call centers designed to appear as legitimate investment advisory services. The operation allegedly led to losses totaling nearly 734 million won ( $540,000 USD) from at least 48 victims between June 2023 and April 2025.
Posing as cryptocurrency investment professionals or team leaders from fake firms, the perpetrators persuaded individuals to register on counterfeit crypto exchanges. Victims were assured they would receive compensation for losses or could earn significant returns by purchasing tokens falsely claimed to be on the verge of listing.
Manipulated Accounts and Withheld Withdrawals
To build trust, scammers showed fake profits in the victims’ online accounts, manipulating dashboards to make it appear that cryptocurrency assets had been credited. These fabricated gains were used to push victims into making larger follow-up investments.
Authorities noted that once victims attempted to withdraw funds, their requests were either delayed indefinitely or outright ignored. In most cases, the fraudsters vanished with the funds.
Investigation Ongoing, More Crypto Scam Victims Expected
Of the 25 individuals arrested, 20 have been taken into custody while the rest face further legal action. Police have charged the suspects with crimes including organizing and operating a criminal group and violating the Telecommunications Financial Fraud Victim Refund Act.
Investigators believe there may be additional victims who have yet to come forward. The police are continuing their probe, including efforts to identify and apprehend higher-level operators involved in the scheme.
Authorities are urging the public to be vigilant about unsolicited investment advice and to verify the legitimacy of crypto platforms and advisors before engaging in any transactions.
In other news, all three South Korean presidential hopeful have voiced their support for Bitcoin ETF and institutional investment into crypto, marking a significant policy shift in South Korea.
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