A South Korean financial influencer has been implicated in an alleged $232 million cryptocurrency scam that has shaken the nation’s investment community.
After unsatisfied investors requested refunds for failed stock advice he provided, authorities launched an investigation, which ultimately led to the arrest of 215 people in connection with the scheme.
Among those arrested, only 12 individuals remain detained, with the primary suspect, an investment advisor and YouTube personality known as Mr. A, at the center of the allegations. Mr. A, who managed an investment advisory firm and ran a popular YouTube channel with over 620,000 followers, initially fled to Australia but has since been apprehended by authorities.
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The alleged scheme traces back to 2020 when Mr. A’s investment recommendation went wrong, leaving clients unsatisfied and demanding their money back. In response, he reportedly pivoted to selling digital assets and established a network of front companies to orchestrate the fraud.
Between late 2021 and early 2023, Mr. A and his associates allegedly collected 325.6 billion won (approximately $232.7 million) from 15,304 individuals who invested in a selection of 28 cryptocurrencies.
Out of these 28 cryptocurrencies, six were allegedly created by Mr. A and his associates. Investigators have reported that the accused manipulated these coins’ market values to mislead investors further, while the remaining assets were largely obscure and held minimal worth.
Utilizing the vast reach of Mr. A’s YouTube channel, the alleged fraudsters are believed to have collected the personal contact details of millions. They aggressively targeted middle-aged and senior citizens through direct marketing and deceptive impersonation of officials from South Korea’s Financial Supervisory Service.
Police efforts to recover funds have yielded the seizure of 22 Bitcoin
In response to these incidents, South Korean regulators have intensified efforts to scrutinize cryptocurrency transactions, implementing policies to control fraud and enforce severe penalties, including potential life sentences.
In other news, a phishing scam has led to a $6 million loss for a GIGA token holder. How did hackers pull off this heist? Read the full story.
