An escaped South Korean criminal suspect, who was previously held on fraud charges at the Seoul Detention Center, allegedly stole nearly $362,000 in cash from an OTC crypto buyer in Seoul’s Gangnam district. The suspect, in his 40s, was given permission to leave the detention center to attend his father’s funeral in November 2023 but used the opportunity to escape. Police had been searching for the suspect since his escape, and he reportedly lured the victim to Gangnam under the pretense of selling a cryptoasset at a discounted price. Instead, the suspect brandished a weapon, took the cash, and fled the scene. Police were able to identify the suspect with evidence from the scene, leading to his arrest. They also apprehended a man and a woman suspected of aiding in the suspect’s escape.
The incident is part of a growing trend of OTC crypto-related crimes in South Korea, with several other cases reported in recent months. In February, six individuals were arrested for an OTC theft in Incheon, while a man was apprehended in Icheon in January on similar charges. A gang of OTC thieves was also arrested for a crime in Gangnam earlier in the month. Additionally, a separate OTC crypto theft occurred in Geumcheon in late February. The rise in OTC crypto crimes reflects the increased speculative demand for risky tokens in South Korea, where the South Korean won has become the most traded currency against cryptoassets globally.
The Ministry of Justice confirmed that the escaped suspect was held at the Seoul Detention Center for fraud charges before his escape. Despite being allowed to leave the center to attend his father’s funeral, the suspect did not return as agreed. Police believe the suspect lured his victim to Gangnam by offering to sell a cryptoasset at a discounted price, only to rob the victim at gunpoint. The quick actions of the police, aided by evidence from the scene and a background check, led to the suspect’s arrest and the recovery of most of the stolen cash. The investigation into the incident is ongoing, with officers still working to uncover more details.
The surge in OTC crypto crimes has caused concern among law enforcement in South Korea, prompting increased efforts to combat such criminal activities. Authorities have been cracking down on individuals involved in OTC thefts, with multiple arrests made in recent cases. The involvement of accomplices in aiding suspects to escape or carry out the crimes highlights the need for coordinated efforts to address the rise in crypto-related criminal activities. As the speculative demand for risky tokens continues to grow in South Korea, law enforcement agencies are facing new challenges in tackling OTC crypto crimes and protecting investors from fraudulent schemes.
The South Korean won’s increasing role as the most traded currency against cryptoassets globally reflects the country’s significant interest in cryptocurrencies and digital assets. The surge in speculative demand for risky tokens has created opportunities for criminals to exploit investors through OTC transactions. Law enforcement agencies are working to enhance their capabilities in combating crypto-related crimes and improving security measures to protect investors. The recent incidents of OTC crypto theft in various districts in South Korea highlight the need for increased vigilance and enforcement actions to safeguard the cryptocurrency market and prevent further criminal activities.
