Police in Gangnam, an affluent district of Seoul, South Korea, recently arrested 10 individuals accused of stealing money in a fraudulent USDT OTC trade. The suspects, described by police as a “gang,” lured a victim and associates into a street in the Yeoksam Neighborhood with the promise of selling USDT tokens at a discounted price. The incident took place in the early hours of March 21, with the gang allegedly assaulting the victim’s group while pretending to count cash, ultimately making off with over $74,000 without transferring any coins. Following the incident, three suspects were apprehended near the scene of the crime, while four others were arrested that same day in Anseong, Gyeonggi Province. Two additional suspects managed to escape to Busan, where they were later detained. The alleged ringleader was arrested in Cheonan, South Chungcheong Province four days later.
Authorities have revealed that the gang had initially planned the robbery in Busan and may have been targeting other crypto traders as well. They managed to confiscate around $37,000 in cash and a gold necklace valued at around $4,750, which the suspects had purchased using the stolen money. The arrested individuals have been formally charged and handed over to the prosecution service. Police are continuing their investigation to locate any additional accomplices and the remaining stolen cash. This incident is part of a growing trend of crypto-related crimes in South Korea, fueled by the surge in popularity of OTC trading and the return of the kimchi premium.
In a separate incident on March 13, five individuals were arrested for attempting to extort nearly $100,000 from two victims in a similar fashion in Yeoksam. After conducting a trade with the victims and receiving USDT tokens, other members of the group posing as police officers demanded cash from the traders, alleging illegal crypto trading activities. When the traders refused, the gang attacked them in an attempt to flee. The rise in such OTC crypto scams has prompted a warning from law enforcement officials to the public to exercise caution when engaging in offline cryptocurrency transactions, given the recent increase in criminal activities targeting crypto traders in the country.
The surge in OTC trading in South Korea has been accompanied by a significant increase in fraudulent schemes and scams targeting unsuspecting individuals. In February, six suspects in Incheon absconded with over $747,000 during a fraudulent OTC transaction, while similar incidents were reported in Geumcheon in late February and Icheon in early January of the same year. The police have been working to crack down on these crimes and apprehend the perpetrators, but the prevalence of such incidents highlights the need for greater vigilance and caution when engaging in crypto transactions, particularly in a booming market like South Korea.
While South Korea’s economy has been buoyed by robust exports, particularly in the semiconductor sector, the rise in crypto-related crimes poses a challenge to maintaining economic stability and security. Authorities are working to address the increasing trend of scams and fraudulent activities in the crypto space, issuing warnings to the public and intensifying efforts to crack down on criminal groups perpetrating these crimes. The incidents in Gangnam and other locations across South Korea serve as a stark reminder of the risks associated with crypto trading and the importance of due diligence and caution to protect oneself from falling victim to scams and fraudulent schemes in the burgeoning cryptocurrency market.
