The South Korean authorities have arrested three individuals for their suspected involvement in a giant airdrop cryptocurrency scam that swindled 129 individuals of nearly $4.1 million (5.7 billion Korean won).
The suspects had been sending in bulk messages claiming that the recipients had won “airdrop rewards,” according to News1.
The victims were then instructed to install a counterfeit mobile application that spread a useless cryptocurrency known as GCV (Golf Cart Victoria).
Pretending to offer exclusive investment opportunities, the gang enlisted unsuspecting investors in the GCV tokens, which proved later to be of no economic significance.
Organized Criminal Group Used Fake Coin and Membership Promises
The Gyeonggi Southern Provincial Police Agency’s Anti-Corruption and Economic Crimes Investigation Unit confirmed that the mastermind, Mr. A, was a man in his 50s and was behind the operation in a fake form from December 2023 to June 2024.
He was assisted by two co-conspirators: Ms. B, a businesswoman in charge of bank accounts, and Mr. C, a financial manager.
The two, together with a number of others, then developed the GCV token, established an office and call center in Seoul, and even hired employees to sell counterfeit golf memberships.
The victims were led to believe that by purchasing GCV coins at varying levels of prices, they would be entitled to upscale golf course memberships across Asia.
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Victims Were Given Useless Tokens, Leading to Long-Term Police Investigation
Researchers discovered that while victims were rewarded with actual GCV tokens through the bogus app, the tokens were nearly worthless, being worth only about 1.4 Korean won (about $0.001) per token.
In July 2024, the scam was uncovered after victims realized they had been scammed and reported the scam to the police.
After a year of research, financial tracing, gathering evidence, and executing raids, Mr A and his co-accused were arrested and charged.
Police collected detailed testimonies from victims, along with records of transactions, to build the group’s case of fraud.
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Police Issue Warning on Airdrop Scams Amid Similar Global Incidents
Official statements pointed out that efforts are being initiated to trace the stolen funds and return as much of the money of the victims as possible.
The public has been asked to exercise caution by a police representative, citing that investment proposals received via telephone or messages on social networks from unknown individuals are often scams.
This is the most recent of an ever-growing list of global crypto scams that use fake airdrops. In June, UnoCrypto reported that the frontend website interface of Cointelegraph was hijacked to promote an imposter “CTG token” airdrop giveaway, showing how rampant such ploys are.
According to a report covered by our journalist, fake airdrop scams accounted for almost 70% of the $2.2 billion that fell prey to crypto hacks and scams in 2024, underscoring the need for vigilance in the rapidly expanding digital assets sector.
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