North Korean Defector's Crypto Scam Defrauds 20 Victims of 1 Billion Won

In South Korea, a cryptocurrency scam orchestrated by an alleged North Korean defector has been exposed, resulting in the defrauding of over 20 victims who lost nearly 1 billion Won, approximately $728,000. The scam revolved around a fake crypto investment platform promoted by a woman who claimed to be a former North Korean soldier. This individual, who had resettled in South Korea over a decade ago, was reportedly recruited by a Chinese national to endorse a fraudulent trading app. She then brought in two other North Korean defectors to assist in the scheme, expanding her reach to South Korean citizens by promising high returns on crypto investments.

Victims were lured into transferring funds into what they believed was a legitimate platform. Initially, the app functioned as expected, allowing early investors to withdraw their earnings. However, by early July, the app became unresponsive and froze all withdrawals, leaving later participants with significant losses. Authorities suspect that the woman may have also lost money in the scam but are continuing their investigation, as she remains a central figure in the fraud.

Police are also scrutinizing the roles of the two defectors recruited by the woman, determining whether they knowingly aided in the scam. If the case proceeds to trial, these individuals may be called upon as both victims and witnesses. This incident is part of a broader trend of crypto fraud cases in South Korea, with dozens of individuals arrested earlier this year for operating similar fake investment schemes. These operations have resulted in the theft of hundreds of thousands of dollars from unsuspecting investors, and investigations into higher-level organizers are still underway.

This case highlights the growing concern over crypto fraud in South Korea. The use of a bogus crypto investment platform to siphon funds from unsuspecting investors underscores the need for increased vigilance and regulation in the cryptocurrency space. The involvement of North Korean defectors and a Chinese national adds an international dimension to the scam, suggesting potential cross-border collaboration in fraudulent activities. The incident serves as a reminder of the risks associated with investing in cryptocurrencies and the importance of thorough due diligence before engaging in any investment opportunities.