South
Korean
law
enforcement
has
struck
a
blow
against
social
media-fueled
crypto
scam
with
the
arrest
of
19
individuals
linked
to
a
deceptive
“crypto
reading
room.”
The
Daegu
Police
Agency’s
raid,
which
unfolded
on
May
21st,
exposed
a
manipulative
scheme
that
preyed
on
more
than
300
unsuspecting
investors,
swindling
them
out
of
a
staggering
$19
million.
Crypto
Scam:
Deceptive
Chats,
Illusory
Profits
Authorities
allege
the
international
gang
operated
an
“open
chat
room,”
likely
on
platforms
like
Telegram
or
KakaoTalk,
masquerading
as
a
legitimate
hub
for
cryptocurrency
trading
advice.
Police
describe
the
room
as
a
meticulously
crafted
stage.
Gang
members,
posing
as
seasoned
crypto
experts,
dispensed
seemingly
valuable
tips
and
boasted
about
substantial
returns.
Others,
acting
as
ordinary
investors,
chimed
in
with
enthusiastic
endorsements,
weaving
a
web
of
trust
to
lure
victims
into
the
trap.
of
the
Daegu
Police
Agency.
Bogus
Exchanges,
Brutal
Betrayal
The
meticulously
crafted
facade
unraveled
when
victims
were
steered
towards
downloading
apps
connected
to
bogus
crypto
exchanges.
These
fake
platforms,
say
officers,
housed
unlisted
coins,
further
fueling
the
illusion
of
exclusivity
and
potential
profit.
As of today, the market cap of cryptocurrencies stood at $2.5 trillion. Chart: TradingView.com
To
solidify
trust,
the
crypto
scam
gang
allowed
victims
to
make
small,
initial
gains,
emboldening
them
to
invest
larger
sums.
The
true
horror
unfolded
when
victims
attempted
to
withdraw
their
funds.
They
were
met
with
a
seemingly
insurmountable
obstacle
–
fabricated
“withdrawal
fees.”
Refusal
to
pay
these
fees
resulted
in
the
gang
severing
all
communication,
leaving
victims
with
nothing
but
empty
promises
and
stolen
savings.
Pig-Butchering
Abroad:
A
Chilling
Twist
The
investigation
revealed
a
particularly
disturbing
recruitment
tactic
employed
by
the
ringleader.
Dubbed
“pig-butchering,”
it
involved
promising
unsuspecting
individuals
lucrative
job
opportunities
in
Myanmar.
Upon
arrival,
a
sinister
bait-and-switch
unfolded.
Passports
and
phones
were
confiscated,
and
victims
were
strong-armed
into
joining
the
fraudulent
operation.
This
tactic
highlights
the
international
reach
of
these
criminal
networks
and
the
lengths
they
go
to
exploit
vulnerabilities.
Crypto
Wild
West:
A
Call
for
Regulation
This
raid
underscores
the
urgent
need
for
stricter
regulations
in
the
cryptocurrency
space.
South
Korea,
a
hotbed
for
crypto
activity,
has
seen
a
surge
in
social
media-driven
scams.
Experts
believe
this
case
may
be
a
catalyst
for
the
government
to
implement
stricter
controls
on
both
crypto
platforms
and
social
media
groups
offering
investment
advice.
Featured
image
from
Pacific
Standard,
chart
from
TradingView
Go to Source
Author: Christian Encila
