South Korea's Crypto-Related Fraud Cases Increased by 41 percent in 2020 alone, Says FSS

By: Mark Jessy

South Korea's Crypto-Related Fraud Cases Increased by 41 percent in 2020 alone, Says FSS

April 26, 2021 6:41 AM

Despite bitcoin (BTC) prices hitting new lows recently, the global crypto market is still bullish as it's being accompanied by high crypto fraud cases rising from South Korea as well.


According to the latest figures from the local financial watchdog, it reveals that crypto scams are still on the rise in the country. The data from 2020 shows how rapid crypto scams are emerging by over 41.5% just after bitcoin parabolic rise towards $64k.


South Korea Police to Dedicate a Special Unit to Investigate Crypto Frauds in the Country 

Statistics from the FSS from the start of 2020 to October same year reveal that the 41,6% increase belongs to 555 cases of questionable trades.


However, due to the significant surge of cases, the local police have pledged to boost their efforts in cracking down on crypto-related frauds across the nation. Meanwhile, authorities launched a dedicated team at the financial crime unit.

Fraudster Found Guilty of Scamming $16 Million in South Korea

Similarly, Yonhap announced another millionaire crypto fraud case in South Korea. Lee was given a six-year jail term after he was found guilty by the South Korean Court. The fraudster operated a scam scheme that duped over 1,300 investors in just under 1 year.


According to prosecutors, Lee took $16 million in fiat and crypto as Judge Cho Sang-min reveals details of the case:


" The defendant conned his victims by promising that they could massive profits in a short period and selling the digital currency which was issued by an unregulated Chinese company."


However, Lee's actions became even more suspicious from the point he claimed the Chinese company he was promoting is a huge business boasting over 30 years of history.


The fraudster ran its scheme from October to May 2019, he attracted investors by telling them,"if you buy crypto issued by a Chinese company, you can make enormous money."


Meanwhile, the court handed 18-month and eight-month sentences to two of Lee’s accomplices for their participation in the crypto scam scheme.