The Unlisted Coin Crypto Scam: How Victims Lost Millions In South Korea

Jan. 31, 2023
The Unlisted Coin Crypto Scam: How Victims Lost Millions In South Korea

South Korean police are looking into a crypto scam of $8 million, as reported by 40 victims who say they were duped into purchasing a crypto asset with no value or that does not exist. The law firm For You Law in Seoul brought the case to police attention, according to Chosun Ilbo.

The alleged scammers posed as a “loss compensation team” that offered to help victims recover their lost investments by selling them the unlisted crypto asset, Epay Coin.

The victims were promised access to the coin via private sale. They believed they would see substantial returns once it was listed on major exchanges, including Binance, Huobi, Upbit, and Bithumb.

However, Binance officials have stated that they have never heard of the coin in question. The law firm estimates that hundreds of investors may have been affected, suffering combined losses of $8 million. Therefore, 40 victims alone lost $1.6 million.

Unable To Contact Epay Coin Masterminds

The Epay Coin operators could not be reached by Chosun reporters who tried to contact them via the phone number on their business card and by visiting their claimed office in Seoul’s Yeouido District.

The building manager informed the media outlet that the office was rented out to multiple companies. Lawyer Kim Kyung-nam warns of scam firms posing as recovery helpers. In addition, they then offer to sell coins at a low price.

Kim encouraged the public to collect evidence, like phone recordings, to assist in the prosecution of suspected fraudsters. Authorities from the Yeongdeungpo District branch of the Seoul Metropolitan Police Agency are leading the investigation into the case. They are equipped with advanced crypto-tracking technology.

In conclusion, South Korean police are investigating a potential $8 million crypto scam following complaints from 40 victims who were misled into buying a worthless or non-existent crypto asset.

The alleged scammers posed as a loss compensation team and promised big profits from the sale of the Epay Coin. However, the coin’s listing on major exchanges has not been confirmed, and the operators cannot be reached.

The case highlights the importance of being cautious when investing in crypto assets and the need to gather evidence to prosecute fraudsters.

South Korea’s Fight Against Crypto Fraud

Prosecutors in South Korea have stated that they will invest money in crypto monitoring tools and that they will employ these new solutions to combat money laundering and crypto fraud.

According to Kookmin Ilbo, the Supreme Prosecutors’ Office of the Republic of Korea (SPO) has stated that it is ready to purchase “tracking” software that would allow it to monitor crypto transactions in order to “examine crimes involving cryptocurrency.”

The new crypto tracker is capable of real-time monitoring of bitcoin transactions. Improves law enforcement’s ability to detect crypto fraud. However, prosecutors also indicated that the equipment they planned to purchase would allow them to “extract correlation data in many transactions” and examine the wallet and exchange-related transaction histories.

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Advanced crypto-tracking tools allow South Korean prosecutors to monitor cryptocurrency flow and track transactions, helping prevent fraud. This is a step towards ensuring a safer and more secure crypto environment in the country.

Furthermore, South Korean prosecutors have acquired advanced crypto-tracking tools to combat crypto fraud. These tools will provide data to prosecute perpetrators and make the crypto market safer. The acquisition shows the commitment of prosecutors to protect investors and prevent fraud.

Ammar Raza

Associate editor
Skilled in crafting compelling content, with a deep enthusiasm for blockchain technology. I offer precise and easily comprehensible perspectives on cryptocurrencies, decentralized finance, and the ever-evolving landscape. Count on me as a reliable resource to remain informed about the latest advancements in the world of crypto.