South Korean authorities have cracked down on a major crypto fraud scheme. In a large-scale raid on fake cryptocurrency exchanges, the police seized over 4.4 billion Korean won (approximately $3.2 million) in digital assets, mostly in Ethereum. The operation targeted a well-organized syndicate that had been running illegal exchanges and siphoning user fees for years.
According to Yonhap News Agency, the group had been manually converting cryptocurrency through an unregistered platform called Nettel Pay for the past six years. In total, they allegedly carried out fraudulent crypto transactions amounting to $694 million.
Authorities arrested two exchange operators and three main perpetrators, who now face charges for violating electronic payment and foreign exchange transaction laws. The suspects also tried to launder the stolen crypto by using false identities, which investigators uncovered during raids and transaction monitoring.
🔎 The investigation further revealed that some of the illicit proceeds were funneled into foreign gambling websites, adding to the charges against the group.
To strengthen the fight against crypto-related crime, South Korean prosecutors earlier this year established a special joint investigation unit focused on virtual assets. The team is composed of prosecutors and financial regulators from the Financial Services Commission and the Financial Supervisory Service.
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