S Korean Police Investigate Possible $8 Million Crypto Scam Targeting Investors Who Have Suffered Losses
South Korean police are investigating a possible $8m cryptocurrency scam after 40 victims claimed they were conned into purchasing a non-existent or worthless cryptoasset.
According to Chosun IlboThe case was brought to police’s attention in the first place by the lawyers of the group, a Seoul-based law firm For You Law. According to the law firm, the scammers tried to deceive victims by pretending to be a loss compensation team that caters to those who have suffered financial loss.
According to the group, they told people that they could recover their losses by purchasing their own unlisted cryptoasset called Epay Coin.
They claimed that individuals could obtain the coin through a private sale and then make “big profits” once the token was listed.
According to the lawyers, the Epay Coin masterminds claimed their token would soon be listed “on major offshore exchanges like Binance and Huobi.” They also stated that the coin would be listed on large domestic exchanges such As Upbit and Bithumb.
The same media outlet reported that Binance officials stated they had never heard about the coin.
For You Law claimed that while only 40 victims have been identified so far, it suspects that hundreds of investors were tricked out to a total of $8million. According to lawyers, the 40 victims suffered losses totaling $1.6 million.
Where are the “South Korean Crypto Scam” Masterminds?
Chosun reporters tried to reach the Epay Coin operators via telephoning the number printed on their business cards. This was not successful.
Reporters also tried to visit the Epay Coin offices in person. The company claimed that they were using 12 floors of a commercial building located in Seoul’s wealthy Yeouido District. However, a building manager revealed to the media that the office was being rented out to several different companies.
Kim Kyung-nam, a lawyer from Forma Law Firm was quoted as saying that “a scam firm” had “approached victims claiming they could help with’recovery of damages caused by past investments.
Kim stated that the “scam firm” offered its victims the opportunity to purchase coins at a low price.
Kim stated that these cases were “rapidly growing.” Kim encouraged the public to collect evidence such as phone recordings in order to prosecute the fraudsters.
The Seoul Metropolitan Police Agency’s Yeongdeungpo District is investigating the case.
Police and the national prosecutor have invested in advanced crypto tracking tools to help them stop crypto-related crimes.