South Korean prosecutors have indicted a man suspected of masterminding a $3.4 million cryptocurrency fraud scheme and undergoing plastic surgery to avoid arrest. The man, surnamed Kim and in his forties, was arrested after 10 months on the run. He is accused of defrauding 158 victims by promising high returns on investments in a crypto mining business. Police also arrested five suspected accomplices, including the head of a law firm, and charged eight recruiters last year. Kim allegedly embezzled investors’ funds instead of paying them promised returns, leading to a probe by the police.
Kim managed to evade arrest for almost a year by changing his appearance and frequently moving houses. He reportedly spent $15,700 on plastic surgeries, including double eyelid surgery, nose surgery, liposuction, and facial contouring, to prevent investigators from recognizing him. He also purchased a custom-fit wig to further disguise his appearance. Despite these efforts to evade capture, undercover detectives located his hideout in Guri, Gyeonggi Province, on August 25. They found that Kim’s girlfriend and the manager of a law firm had helped him convert virtual assets obtained from criminal proceeds into cash to fund his escape.
Police believe Kim began his fraudulent operation in November 2021 and continued until June 2022, soliciting investments from victims promising high monthly profits. However, when investors did not receive their returns as promised, a police investigation was launched, leading to an arrest warrant issued for Kim in September 2023. Despite failing to appear at a court hearing, Kim managed to remain elusive using fake identities, phones, and bank accounts. Investigators used CCTV footage, phone records, and Internet searches to track him down, leading to his arrest after almost a year on the run.
The law firm manager accused of aiding Kim’s escape was not arrested after a court ruled that they posed no flight risk and had cooperated with the police investigation. Prosecutors allege that the manager and Kim’s girlfriend facilitated the conversion of crypto assets into cash to fund his evasion. They also helped Kim find a plastic surgery clinic and a wig-making company to alter his appearance. The case sheds light on the prevalence of crypto scams in South Korea, with individuals falling victim to fraudulent schemes, particularly those related to mining-themed investments.
The investigation into Kim’s alleged crypto fraud highlights the challenges posed by financial crimes in the cryptocurrency industry, including the use of deception to lure victims into fraudulent schemes. Authorities in South Korea are cracking down on such fraudulent activities and are actively pursuing perpetrators involved in crypto scams. The case also underscores the importance of regulatory oversight and investor education to protect individuals from falling victim to similar scams in the future. As the cryptocurrency market continues to evolve, efforts to combat fraud and protect investors will be crucial in maintaining trust and confidence in the industry.
