Authorities in South Korea have detained 19 members of a phony social media chat group that defrauded 308 investors of about $19 million.
Those in custody had run an open chat room and conned hundreds of investors out of $18.8 million by promising fast gains if victims bought in unlisted currencies.
Seungwon Lee claims that the chat channel encouraged participants to invest in unlisted coins while feigning to provide genuine advice on cryptocurrency trading and even making a little profit.
Unlisted Coins
The fraudulent unlisted coins did not provide any profits, and the people who were caught broke off contact with their investors when they began to demand a return on their capital. If victims tried to take their money out, the gang would demand withdrawal costs.
The group would break off communication if the victim refused. On May 21, the criminal task squad of the Daegu Police Agency made the arrests. At least six more suspects, they believe, are still at large and are currently abroad. Red alerts have been requested for these persons from Interpol.
Pig-Butchering Tactics
The gang leader recruited new members using pig-butchering techniques. The chat room leader would allegedly entice people to enter Myanmar illegally, promising them jobs there and coerce them into joining the criminal group.
The police reported this information. The leaders imprisoned people and took away their cell phones and passports to force them to commit fraud. Scams involving pig butchers usually begin when dishonest people seduce an unsuspecting target and demand that they contribute substantial sums of money to elaborate and profitable schemes.
Once the victim transmits the money, the con artists take off with it. The creator of Zerodha, Nithin Kamath, wrote on X, saying:
“As the name implies, a pig butchering scam involves fattening the victim before butchering. Scammers gain the trust of users by using fake profiles. They use the pretense of love and friendship to gain the trust of users and then induce them to send money for jobs and high-return investments and steal the money. These scams are global, and their scope is staggering.”
The US Justice Department detained two Chinese nationals on Monday for their role in a $73 million money laundering scam that used techniques akin to pig-butchering.
These arrests coincide with recent global crypto arrests. Along with their current search for the stolen money, the police have asked Interpol to help them locate six more people.
