North Korean Defector Scams 20 Victims Out of $728,000 in Crypto Fraud

A North Korean defector and a former soldier have allegedly scammed more than 20 people, stealing 1 billion Won, equivalent to $728,000. The scam involved a cryptocurrency platform, with the defector targeting other defectors and South Korean citizens, persuading them to invest in the fraudulent scheme. The defector, who claims to have served as a North Korean soldier, was initially approached by a Chinese national who urged her to bring others into the investment scheme. She then recruited two fellow defectors and began targeting South Korean citizens.

The former soldier persuaded victims to transfer funds in Korean Won to her account, converted the money, and deposited it into the fake platform. Victims then invested in cryptocurrencies through the counterfeit app. However, at the beginning of July, the victims were unable to withdraw any funds, and the counterfeit app stopped working. The two defectors who had transferred funds to the app early were able to withdraw their initial investments more than a year ago. However, other victims who joined the investment scheme later suffered major losses after the app froze.

The former soldier, who was initially brought in by a Chinese national, claimed to have suffered financial losses as well. If the case goes to trial, the two defectors will be brought in not only as victims but also as witnesses, according to South Korean authorities. This is because they’ve also aided in scamming other South Korean nationals.

This incident is not an isolated case. A few months ago, Jeju Metropolitan Police arrested 25 individuals connected to four coordinated fake-crypto investment rings. The scammers lured investors via call centers and bogus exchanges, stealing over $540,000 in total. Officers believe more victims remain unaccounted for and are continuing the probe into higher-level organizers. South Korean authorities have dismantled multiple scam operations across the country, taking dozens into custody for posing as “crypto advisors” and defrauding retail investors.

This case highlights the growing concern over cryptocurrency fraud and the vulnerability of investors to such schemes. The use of fake platforms and counterfeit apps to lure victims is a common tactic used by scammers. The involvement of North Korean defectors in this scam adds a layer of complexity, as they are able to exploit the trust and familiarity within the defector community. The case also underscores the need for increased vigilance and regulation in the cryptocurrency market to protect investors from such fraudulent activities.