South Korean police have raided a suspected “fake crypto mining” operation in Incheon, leading to the arrest of 13 individuals, with seven held in custody on charges of organized crime. The group had promised investors profits from mining Cardano (ADA) and other tokens by investing in crypto mining machines. They allegedly duped investors out of $518,000, targeting people aged in their 30s to 60s through a call center that contacted them using a darkweb personal information database. The suspects planned to strike again with the scheme but were caught by the police.
The group of individuals behind the fake crypto mining operation set up a call center that contacted potential victims using data from a darkweb personal information database. The database contained the names of crypto enthusiasts, and the call center employees offered them a “VIP promotional offer” to buy crypto mining rigs at a low price. The operators claimed that investors could buy machines and pay a company to operate them remotely, promising higher hashrates and guaranteed profits with higher investments in the machines. The suspects also provided fake crypto wallets for tokens like ADA, Ethereum, and Solana.
When police began investigating the fake crypto mining operation, the alleged masterminds tried to evade capture by getting rid of their contact phone line, deleting their internet site, emptying their offices, and closing bank accounts. The group had formed a criminal organization in a planned manner, with some confirmed members of violent gangs. Drugs and a syringe were found at the home of one of the alleged gang members, and police froze over $88,000 in assets while requesting a court to block an additional $360,000. Luxury goods and an expensive vehicle were confiscated from one of the masterminds’ homes.
Investigators noted that some of the individuals involved in the fake crypto mining scheme were confirmed members of violent gangs in Seoul and Incheon, with drugs and a syringe found at the home of one of the suspects. Police confiscated luxury goods and froze assets worth $88,000 while requesting the court to block $360,000. The group had established a new office and were preparing to commit more offenses, but the police were able to intervene before they could carry out their plans. Victims of the scheme are being supported in their efforts to recover their funds.
South Korean police have been combating a rise in crypto mining-themed scams, such as fake investment schemes in overseas-based mining projects. Last year, there was a notable increase in these kinds of scams, targeting individuals interested in cryptocurrency mining. The operation in Incheon is part of the ongoing effort by law enforcement agencies to crack down on fraudulent activities in the crypto industry and protect investors from falling victim to these scams.
