South Korean Crypto Exchanges Blocked $82m Worth of Romance Scam Transactions in 2023

South Korean cryptocurrency exchanges reported blocking transactions worth $82 million that were linked to romance scams in 2023, according to a report by Cryptonews.com. Coinone, one of the exchanges, stated that romance scams using cryptocurrency were becoming increasingly prevalent in South Korea. The exchange claimed to have stopped over $2.6 million worth of romance scam-related trades using their detection system and monitoring network. This announcement followed a warning from the Financial Supervisory Service (FSS) about the rise of crypto-related scams on social media platforms. The FSS advised the public to be cautious of romance scammers and unsolicited investment recommendations. The regulator specifically highlighted the potential risks associated with opposite-sex individuals or strangers offering investment assistance. Romance scammers are often affiliated with illegal or fake crypto exchanges, as exemplified by a male customer in his 60s who nearly lost all his crypto holdings to a romance scam. Coinone detected the scam when the man attempted to send his coins to a fraudulent wallet owned by someone he met online. In response to these scams, South Korean exchanges have implemented round-the-clock transaction monitoring and are collaborating with regulators to identify and report fraudulent trading platforms. This rise in crypto-powered romance scams is not exclusive to South Korea, as similar incidents have been reported in Japan and other countries. To combat these scams, authorities are warning the public to be cautious of individuals on dating sites who try to persuade them to invest in crypto-related ventures.