A South Korean court has sentenced a 70-year-old man to prison for his involvement in a Bitcoin (BTC) fraud scheme. The man, identified only by the initial A, received a one-year jail term for his role in a telecommunications-related financial fraud.
According to Kyeonggi Ilbo, the man was recruited by an organized voice phishing ring in August 2021, although he claimed he was unaware of the group’s fraudulent activities. Prosecutors explained that the group asked A to purchase Bitcoin from a local cryptocurrency exchange using his own money and then transfer the tokens to the group’s cryptocurrency wallet. In return, the group promised him a 3% monthly commission, with the potential to earn up to $4,000 per month through continued BTC purchases.
However, investigators later discovered that the ring was actually a voice phishing operation that intended to use A to launder their ill-gotten funds. In South Korea, domestic cryptocurrency exchanges are required to conduct fiat-related transactions through verified bank accounts, making it difficult to hide the identities of the ring’s members. Police officers testified that the money paid to A was the proceeds of crime obtained from victims of romance scams.
South Korean Court Sentences Man to Prison for Role in Bitcoin Fraud Scheme
The fraudsters behind the ring used social media platforms to create fake profiles and engage with unsuspecting South Korean citizens, pretending to be potential romantic interests. Some victims were deceived into “lending” money to the scammers behind the fake profiles, while others received packages from these “online lovers,” only to be contacted by other members of the ring posing as customs officials. These bogus officials claimed that the parcels had been sent illegally and demanded payments of approximately $13,300 to avoid legal trouble.
During the trial, A admitted his guilt but maintained that he was unaware of the organization’s fraudulent activities. The presiding judge acknowledged A’s remorse but emphasized that his actions had caused serious economic and psychological harm. The judge ultimately decided on a one-year prison sentence, taking into account A’s remorse and commitment not to engage in such activities again.
Crypto-powered romance scams have been on the rise in East Asia, particularly targeting older victims. Security providers have reported an increase in dating app-based fraud schemes that lure victims into fake cryptocurrency mining opportunities. In South Korea and Japan, victims of romance scams, often involving cryptocurrencies, have suffered significant financial losses, highlighting the need for continued vigilance and awareness regarding online fraud.