South Korean police in Incheon have raided a suspected “fake crypto mining” operation that promised investors profits from mining Cardano (ADA) and other tokens. Thirteen people were arrested, and seven were held in custody on charges of organized crime. The group allegedly scammed investors out of about $518,000 by promising big profits from investing in crypto mining machines. The masterminds, both aged 29, operated from a call center set up using a darkweb personal information database.
The suspects contacted potential victims using the database, purchased from a Telegram-based vendor, and told them they were eligible for a VIP promotional offer to buy crypto mining rigs at a low price. They claimed that investors could pay a company to operate the rigs remotely on their behalf, resulting in higher profits with higher stakes. When police began investigating, the masterminds tried to evade capture by ditching their phone line, deleting their internet site, emptying their offices, and closing bank accounts. The group was found to have formed a criminal organization and committed crimes in a planned manner.
Some members of the group were confirmed to be part of violent gangs in Seoul and Incheon, with drugs and a syringe found at one member’s home. Police have frozen assets worth $88,000 and are seeking to block an additional $360,000. Luxury goods were confiscated from one of the masterminds’ homes, as well as an expensive vehicle. The group had set up a new office and planned to commit more offenses before being caught. Police are assisting victims in recovering their funds and have warned of a rise in crypto mining-themed dating scams where victims are encouraged to invest in overseas-based mining projects.
This case marks a significant bust in South Korea’s fight against fraudulent crypto schemes, with the group promising investors profits from fake crypto mining operations. The suspects used a variety of tactics, including contacting potential victims through a darkweb database and offering VIP promotional offers to buy mining rigs at a low price. The masterminds attempted to evade capture by dismantling their operation and closing bank accounts, but police managed to apprehend them before they could commit more offenses. The group’s ties to violent gangs and involvement in drug-related activities highlight the dangers of engaging in fraudulent crypto schemes.
It is essential for investors to exercise caution when approached with investment opportunities in the crypto space, especially those promising high returns with minimal effort. The use of darkweb databases and involvement in criminal organizations underscore the need for thorough due diligence before investing in any crypto project. Police efforts to freeze assets and support victims in recovering their funds demonstrate a commitment to combating fraudulent activities in the crypto industry. Authorities are vigilant in monitoring and cracking down on scams to protect investors and maintain the integrity of the crypto market.
