Seoul Busts $12.8M Crypto Mining Scam: 14 Arrested in Major Crackdown

The Seoul Metropolitan Police Agency’s Financial Crimes Investigation Unit has arrested 14 people involved in a $12.8 million (16 billion won) cryptocurrency mining scam.

The mastermind behind the operation, a man in his 40s known only as Lee, went to extreme lengths to evade capture, including undergoing plastic surgery. Authorities announced on August 30 that Lee was finally apprehended after a 10-month pursuit.

Lee is accused of orchestrating a fraudulent virtual asset mining scheme that defrauded 158 victims out of their investments between November 2021 and June 2022. Of the 16 billion won collected, he allegedly embezzled 4.5 billion won ($3.6 million).

To sustain the facade of a legitimate business, Lee employed a network of recruiters, including four top-level headhunters and four mid-level agents, who played crucial roles in convincing victims of the operation’s profitability.

The scam began to unravel in July 2022 when the Seoul Metropolitan Police launched an investigation after receiving 21 lawsuits and complaints from victims across the country.

The investigation uncovered Lee’s extensive efforts to avoid arrest, including spending 20 million won on plastic surgery to alter his appearance. Despite these attempts, Lee was captured earlier this month after nearly a year on the run, during which he failed to appear for a crucial hearing related to his arrest warrant.

During his time in hiding, Lee received assistance from the office manager of the law firm he had hired. This individual allegedly facilitated Lee’s escape by finding a plastic surgery clinic willing to perform the procedure and providing him with a fake phone to mislead investigators.

Along with Lee’s arrest, authorities also detained the eight recruiters who were instrumental in the scheme. These individuals were handed over to prosecutors last September and earlier this month.

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