Scams Involving South Korean Crypto Chat App Channels Are on the Rise, Police Warn
2 min read
South Korean crypto scammers are targeting chat app users on trading and investing channels, police warned on February 21. News1 and Daejon Ilbo reported that the Sejong South Police Station is investigating several cases. The agency reported that “approximately 20 reports” were received from city residents. Citizens claimed they were “deceived” by false or exaggerated information in investment “reading rooms.” South Korea’s retail cryptocurrency market is active and large. Investors regularly meet online in chat app channels, often referred to as “reading rooms.”
The majority use apps like Telegram with its channel feature and KakaoTalk Open Chat. Cryptonews.com has monitored hundreds of crypto-themed chat rooms on KakaoTalk. Some of them have up to 1,500 members. Even smaller channels have hundreds of subscribers.
On most of these channels, traders discuss the future of BTC and popular altcoins. Others are dedicated exclusively to obscure trading platforms or low-cap tokens.
Cryptonews.com, upon visiting these rooms was able to identify posts that appeared to be scams promising “guaranteed profits”
prompting some channel group members (DMs) to contact them for more information to turn.
Some messages, possibly related to scammers, appear to have been removed by the channel’s moderators.
In smaller spaces, traders reported running them and being willing to reveal investment secrets.
Crypto scammers also active on YouTube? (Source: KBS Daejeon News/YouTube).
Are “crypto scammers” also active on YouTube?
According to police, many victims “entered investment reading rooms” because they “saw false and exaggerated advertisements on YouTube.” These include promises of “a guaranteed return of at least 50% on the initial stake” and “advanced cryptocurrency trading tips.” They often “later push people to join member rooms [paid] .”
Then they are forced to deposit “a large sum of money” on unlicensed cryptocurrency exchanges. Police said the scammers “assure” the “victims” that they will soon make profits.
However, officials said that scammers “either disappear or refuse to return their victims’ money.” Members of a “crypto reading room” should always be alert for scams.
Bithumb Korea is the operator of Korea’s largest cryptocurrency exchange. 2-Cryptocurrency exchange Bithumb has failed to strike a deal with major local lender KB Kookmin Bank to issue real-name accounts, jeopardizing its plan to attract more traders.https://t.co/7nuvJj42Xo
– Korea Herald koriahereoldeu (@TheKoreaHerald) February 16, 2024
In December 2023, police in Busan announced they had shut down a $32 million chat app-based crypto fraud ring run by a network of “ Gangsters” is operated.
Officials said nine groups of “violent gangsters” ran such “crypto reading room” pages on chat app platforms.
Police arrested 87 people and claimed the gang deceived 572 people “nationwide.”
