South Korean Police Busts Fake Crypto Mining Ring

South Korean police arrested 13 people in a fake crypto mining operation targeting 69 victims. Ring promised high returns from Cardano (ADA) mining but defrauded investors.

Police in the city of Incheon apprehended a group of 13 individuals, seven of whom are currently in detention on charges of “organized crime,” according to Yonhap. The police granted the remaining six parolees.

Fake Crypto Mining Ring Busted

The police presented the “fake crypto mining” ring-busted evidence at the Incheon Central Police Station in the Jung-gu District. These consisted of laptop computers, mobile phones, and generous sums of money.

The group allegedly assured “victims” that they could generate substantial profits by investing in “crypto mining machines,” according to officers.

According to them, the organization defrauded investors of approximately $518,000. It is purported that two individuals, both of whom were 29 years old, were the masterminds of the organization.

According to the police, the organization operated from February 14 to March 4 of this year and deceived 69 individuals between the ages of 30 and 60.

This tandem apparently established a “call center” that utilized a dark web “personal information database” to communicate with individuals.

According to the police, the organization is believed to have acquired the data from a vendor based on Telegram, and it is paying its vendors in Bitcoin (BTC).

The identities of crypto-savvy citizens were included in this database. The “call center” staff contacted the citizens and informed them they were qualified for a “VIP promotional offer.”

Suspects Planned to Strike Again: South Korean Police

According to the police, the employees informed the alleged victims that they could purchase crypto-mining equipment at a reduced cost.

The operators appear to have informed investors that they could purchase devices and pay a “company” to operate remotely on their behalf.

They informed investors that increased stakes would increase hash rates and more “guaranteed” profits.

Police have released images of what appear to be counterfeit crypto wallets for tokens such as Solana, Ethereum (ETH), and ADA.

The alleged masterminds spent “a month attempting to evade capture by investigators” when the police initiated their investigation.

The masterminds, according to officers, abandoned the phone line they had employed to communicate with potential victims. Additionally, they “deactivated the website” they had utilized, emptied their offices, and closed their bank accounts.

The police stated that the group was all from the same neighborhood, but they “formed a criminal group and committed their crimes in a planned manner.”

Police Confiscate Luxury Goods

Officers also stated that certain members of the group were “confirmed members of violent gangs” that were active in Seoul and Incheon.

According to investigators, “syringes” and drugs were discovered at the residence of one of the alleged gang members.

Officers have also requested that a court prevent the further transfer of $360,000 and have frozen assets valued at approximately $88,000.

In addition, police officials reported that they seized an expensive vehicle and luxury goods from the residence of one of the “masterminds.”

According to a spokesperson for the Incheon Central Police Station,

“After committing this crime, the group established a new office and was preparing to commit more offenses. We are supporting victims in their attempts to recover their funds.”

Police observed a significant increase in dating scams that were themed around crypto mining last year. In these scams, victims are urged to invest in overseas mining projects.