According to a report from local media outlet Chinanews on May 10, the suspects were arrested by the Public Security Bureau of Panshi in the Northeastern Chinese province of Jilin. Authorities allege that the individuals ran an underground bank, using cryptocurrencies to exchange Chinese yuan and South Korean won.
The illegal operation, which authorities claim was based in South Korea, reportedly involved six individuals. Police reports suggest that the suspects deceived unsuspecting investors during the exchange process and fled with their funds to China.
Suspicious transaction patterns in the suspects’ accounts alerted law enforcement, initiating a thorough investigation culminating in their apprehension. Authorities confiscated multiple bank cards and equipment during the operation.
This recent event adds to the rising trend of cryptocurrency scams, echoing previous occurrences in South Korea. On March 26, crypto.news reported the apprehension of fraudsters who deceived a South Korean citizen out of $4.1 million through a false crypto investment scheme.
Significantly, authorities worldwide have bolstered efforts to combat such schemes. For instance, Austrian officials collaborated with international enforcement agencies to dismantle a fraudulent investment scheme, resulting in €6 million in losses for investors who were unaware of the deception.
Last week, U.K. authorities apprehended two individuals for exploiting a duplicated version of the well-known crypto platform blockchain.com to defraud investors of $7.1 million.
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