Incheon, South Korea – On June 3, South Korean police announced the arrest of 13 individuals involved in a suspected “fake crypto mining” scam. The group allegedly promised investors significant profits from mining Cardano (ADA) and other cryptocurrencies. Seven suspects remain in custody on organized crime charges, while the remaining six have been released on police bail.
The police, during raids conducted by the Incheon Central Police Station, seized evidence including mobile phones, laptops, and cash. The suspects reportedly lured victims with promises of lucrative returns from crypto mining “machines.”
The group, led by two 29-year-old individuals, is accused of defrauding 69 investors, ranging in age from their 30s to 60s, out of approximately $518,000. Operating from February 14 to March 4, the scam involved a call center using a dark web database of personal information purchased with Bitcoin (BTC).
The call center contacted potential victims with a “VIP promotional offer” to buy and remotely operate crypto mining rigs at low prices, claiming higher investments would yield greater profits. Police revealed the suspects used fake crypto wallets for ADA, Ethereum (ETH), and Solana.
The masterminds attempted to evade capture for a month, dismantling their operations and deleting evidence. Despite this, police tracked them down and discovered connections to violent gangs in Seoul and Incheon. Investigators also found drugs and a syringe at one suspect’s home.
Authorities have frozen assets worth $88,000 and requested a court to block an additional $360,000. Luxury goods and a high-end vehicle were confiscated from the masterminds’ residence. Police continue to support victims in recovering their lost funds and noted a rise in crypto mining-themed scams over the past year.