South Korean police have arrested 215 people in a new crypto investment scam worth $228.4 million.
The crypto heist is being termed as one of the biggest to have happened in the nation.
The new scam comes at a point when South Korea is undergoing a period of heightened regulatory control over the crypto sector to curb illegal activities in the sector.
South Korea Sees 320 Billion Won Crypto Scam
In the nation’s largest cryptocurrency investment fraud, 215 people have been arrested by South Korean police on suspicion of stealing 320 billion won ($228.4 million).
The alleged mastermind of the organized crime organization was among those arrested, according to Gyeonggi Nambu provincial police on Wednesday.
The group was accused of offering large profits on the sale of 28 different kinds of virtual tokens to over 15,000 individuals. Police have seized 22 Bitcoins from the accounts of these people and are attempting to recover an additional $34 million. Yonhap reports that only 12 of the 215 are still in prison.
According to police, the gang managed a group of market makers to manipulate prices and had issued six of the 28 tokens on foreign cryptocurrency exchanges. The tokens were deemed “worthless” by the police.
Members of the suspected criminal ring are also charged with taking out illegal loans using personal information obtained through theft and digital advertising, including around 9 million phone numbers.
Why is South Korea Witnessing Rise in Crypto Scams?
With over half of the young adolescent population expressing interest in the world of digital assets, the South Korean cryptocurrency market is among the biggest in the world.
But as a result of this growth, the South Korean government has reported witnessing a rise in crypto-related scams and crimes. These include money laundering, Ponzi schemes, etc.
The nation’s authorities are now particularly interested in appropriately regulating the industry and guaranteeing public safety.
South Korea Heightens Its Regulatory Measures Over Crypto Space
For a while now, South Korea has been working to strengthen its regulatory oversight of the cryptocurrency industry. Nonetheless, this is a direct outcome of the rise in illicit commerce, cryptocurrency fraud, and scams that have been occurring in the country.
Just previously, The Financial Supervisory Service (FSS) of South Korea decided to step up its market surveillance efforts in response to the volatility that followed the US presidential election.
Furthermore, new regulations were being implemented by the South Korean government to monitor global and cross-border Bitcoin transactions. The action was taken in an attempt to stop illegal foreign exchange and tax avoidance. It has been argued that cross-border cryptocurrency transactions have turned into a “blind spot” for tax and customs enforcement, which is why this new regulation attempts to stop illegal financial activity.