South Korea Arrests 25 in Crypto Scam, Victims Lost 734 Million Won

South Korean authorities have taken decisive action against multiple crypto scam rings, resulting in the arrest of 25 individuals. The Jeju Metropolitan Police Agency announced the dismantling of four separate criminal organizations involved in an elaborate scheme that deceived dozens of victims. The fraudsters posed as financial experts and promised high returns on crypto investments, leading to significant losses for their victims.

The scam involved setting up call centers that appeared to be legitimate investment advisory services. The perpetrators convinced individuals to register on counterfeit crypto exchanges, assuring them of compensation for losses or significant returns by purchasing tokens falsely claimed to be on the verge of listing. The operation allegedly resulted in losses totaling nearly 734 million won (approximately $540,000 USD) from at least 48 victims between June 2023 and April 2025.

To build trust, the scammers manipulated the victims’ online accounts to show fake profits, making it appear that cryptocurrency assets had been credited. These fabricated gains were used to persuade victims into making larger follow-up investments. However, when victims attempted to withdraw funds, their requests were either delayed indefinitely or outright ignored, with the fraudsters often vanishing with the funds.

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 and are continuing their probe 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. This crackdown highlights the growing concern over crypto-related fraud and the need for increased vigilance and regulation in the digital asset space. The ongoing investigation serves as a reminder of the risks associated with crypto investments and the importance of due diligence in protecting oneself from scams.