"Monthly Returns Promised": Fraudulent Site Swindles 12.3 Billion Won in Cryptocurrency

Fraud Charges under the Act on the Aggravated Punishment of Specific Economic Crimes
False Advertising of "Monthly Returns of 1.5% to 1.8%"

An investment fraud group that deceived victims by promising monthly returns if they entrusted cryptocurrency Ripple (XRP), and then embezzled virtual currency worth approximately 12.3 billion won, has been handed over to the prosecution while in custody.

The Cyber Crime Investigation Unit at the Seoul Metropolitan Police Agency announced on the 30th that it had detained and referred two suspects, identified as A (age 29) and B (age 29), on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violation of the Act on Regulation of Conducting Fund-Raising Business without Permission. C (age 34), an actor who assisted with promotional activities, was booked without detention on charges of fraud under the Criminal Act. For D (age 29), a key accomplice currently residing overseas, Interpol (International Criminal Police Organization) has issued a Red Notice.

Lee Sukyoung, Head of Cyber Investigation Unit 3 at Seoul Metropolitan Police Agency, is conducting a briefing on the morning of the 30th at the Seoul Police Agency Eoullim Hall in Jongno-gu, Seoul. Photo by Oh Jieun

According to the police, from October 16 to October 23 of last year, A and others set up a fake investment site and tricked 71 victims into believing that “if you deposit Ripple, you will receive a return of 1.5% to 1.8% every month.” Through this scheme, they received and embezzled about 3.4 million XRP, valued at approximately 12.3 billion won.

Police investigations revealed that A and others created the fraudulent investment site by appropriating the name of a real blockchain project. They then spread false information through Naver Blogs, online news articles, Wikipedia, and YouTube, recruiting investors. The suspects promised fixed returns and persuaded investors to transfer their Ripple held on domestic exchanges to wallets designated by the group, after which they shut down the site and disappeared.

A diagram illustrating the criminal scheme of a group who deceived victims by promising monthly returns for entrusting the cryptocurrency Ripple (XRP). Seoul Metropolitan Police Agency

The police believe that the actual scale of the crime could reach about 27.3 billion won, and the investigation is ongoing. Utilizing cryptocurrency tracking techniques, the police have urgently frozen approximately 17.3 billion won worth of virtual currencies—such as Tether (USDT) and Ripple (XRP)—that were distributed across overseas exchanges. Procedures to confiscate the illicit gains are also underway.

A police official stated, “People should not be misled by inaccurate information via channels such as YouTube,” and added, “We will respond strictly to cyber fraud crimes involving virtual assets.”

This content was produced with the assistance of AI translation services.