South Korean Crypto Fraud Unit Has Seized $107M in Assets in Past Year

South Korea’s dedicated crypto fraud unit has seized some $107 million worth of assets from criminal suspects in the past 12 months.

Per NoCut News, the unit has indicted 41 people since its launch last year and arrested 18 suspected crypto fraud masterminds.

Crypto Fraud Unit Has Its Hands Full

The unit, known as the Joint Virtual Asset Investigation Team, operates out of the Seoul Southern District Prosecutors’ Office.

However, its members comprise not only prosecution officials, but also staff from the Financial Supervisory Service, the Korea Exchange, and the National Tax Service.

The unit has had its hands full with high-profile cases since its inception. Complex cases of suspected crypto fraud have seen officers seize a collection of over a dozen supercars.

They have also impounded a building in the exclusive neighborhood of Cheongdam, in the Gangnam District of Seoul.

However, their activities have also taken them elsewhere. Officers have impounded suspects’ residences in Jeju Island and Gangwon Province in the past 12 months.

In many cases, suspects were allegedly living a life of luxury with funds the unit thinks they embezzled from innocent victims.

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Victims Say They Lost ‘All of Their Savings’

Nocut News said that it spoke to several “victims” of coin fraud cases under investigation by the unit.

One, a man in his 50s, said that he had invested $38,000 in a coin that later turned out to be fake.

The man said that he had hoped to use the money to buy a house. And he added that he could no longer sleep well due to the scale of his losses – essentially his entire savings. He explained:

“People planted by the company handed over wads of cash. They fabricated bogus phone conversations [to make it seem like people were really earning money]. Now, I feel like it was a scam from start to finish. But at the time, I was swept up with the rest of the crowd.”

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Another unnamed victim expressed “fury,” and told the media outlet:

“Crypto scammers continue to steal investors’ money until they reach a target they are aiming for. That’s why this type of fraud is even scarier than voice phishing crime.”

Scammers Duped Us With Chat Room Brags, Victims Claim

Both victims, the media outlet wrote, were “recruited” from a crypto-focused KakaoTalk chatroom where they say bogus investors “posted photos of themselves showing off bundles of cash and luxury clothing.”

One chatroom member even claimed to have posted an audio recording of a conversation with a leading crypto exchange official.

This individual said the recording was proof that the coin “would be listed soon,” leading to a sharp rise in token worth.