South Korean Police Probe Possible $8 Million Crypto Scam

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South Korean police are investigating a possible $8 million crypto scam – after a group of 40 alleged victims complained that they were tricked into buying a potentially worthless or non-existent crypto-asset.

According to Chosun Ilbo, the case was brought to the attention of the police by the group’s lawyers – from the Seoul-based firm For You Law. The alleged scammers, according to the law firm, attempted to trick victims into posing as a “loss compensation team” that deals with people who have suffered financial loss.

The group reportedly told individuals they could recoup their failed investments by purchasing their own unlisted cryptoasset, named Epay Coin.

They allegedly claimed that individuals could access the coin through a private sale – and then expect “big profits” after listing the token.

The lawyers said the masterminds of Epay Coin claimed that their token was about to be listed “on major foreign exchanges such as Binance and Huobi.” The masterminds also said the coin would be listed on “major national exchanges such as Upbit and Bithumb.”

However, the same outlet quoted Binance officials saying they had never heard of the coin in question.

For You Law said that although only 40 victims had been identified so far, it suspected that “hundreds” of investors could have been deceived out of a total of $8 million. The 40-person group, the attorneys said, suffered combined losses of $1.6 million.

Where are the masterminds of the “South Korean crypto scam”?

Chosun reporters attempted to contact Epay Coin operators by calling the phone number printed on one of their business cards. But that turned out to be unsuccessful.

Journalists also attempted to visit the “offices” of Epay Coin in person. The company claimed to use all 12 floors of a commercial building in Seoul’s affluent Yeouido district. But a building manager told the outlet that the office was actually rented out to different businesses.

Kim Kyung-nam, an attorney at Forma Law Firm, was quoted as explaining that ‘a scam company’ was known to have ‘approached victims claiming to help them ‘recover damages from past investments’ “.

Kim said the “scam company” has been known to offer its victims the “opportunity to buy parts at low prices”.

The lawyer concluded that these cases were “increasing rapidly”. Kim advised the public to “collect evidence, such as phone records” – to help prosecute suspected fraudsters.

The case is being investigated by the Yeongdeungpo District branch of the Seoul Metropolitan Police Agency.

Prosecutors and police across the country have recently invested in sophisticated crypto-tracking tools that they believe will help them stop crypto-related crime.

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