[Exclusive] "Up to 300% Profit Guarantee with Hundreds of Victims"… Investigation into Coin Leading Room Gang

Simultaneous Value Decline at 'Peak' After Raising Investment Funds
'Dishwashing' Method...Suspected of Pocketing Billions
Gathered Victims Using Influencer Promotion
Victims Claim "Hundreds Affected, Still Active"
Police Confirm Investigation Difficulties Unlike Regular Stocks

Since last April, the police have been investigating a group accused of making tens of billions of won through so-called "cleaning" methods in coin (cryptocurrency) leading chat rooms.

[Asia Economy Reporter Oh Gyumin] The police are investigating a group suspected of pocketing billions of won through a so-called "wash trading" method in coin (cryptocurrency) leading rooms. Unlike the previous method of embezzling investment funds by baiting with coin listings, this case is characterized by "price manipulation" using cryptocurrencies within the exchange.

The Cyber Crime Investigation Unit of the Seoul Metropolitan Police Agency has been investigating about 70 suspects since April on charges including fraud, organizing/joining a criminal organization, and violation of the Personal Information Protection Act. From January to April, they allegedly set up coin leading rooms on KakaoTalk group chats and Telegram, induced "full buying," and then immediately sold the coins once victims purchased them, pocketing about 1.1 billion won through this wash trading method.

According to the victims, the suspects introduced themselves as coin traders from 'nnCoin' and 'Joseon Economy TV,' sharing coin information or recommending coin items. They built trust by hitting some recommendations and then provided information on coins with large profits through individual managers rather than group chats. They then urged victims to prepare money and invest in the coins they recommended, claiming, "If you wait a few days, you can earn up to 300% profit." The suspects promoted these coins by leveraging Instagram influencers with about 1.5 million followers or calling themselves "Team Joker Head Trader," boasting on YouTube about amassing huge assets through coins, according to the victims.

Subsequently, the value of these coins dropped by more than half in just one day. Specifically, from January to April, representative coins include BioPassport on Bithumb exchange, OnBuff on Upbit, Adapter Token on Bithumb, and Myce on Coinone.

They promoted the coins by featuring Instagram influencers with about 1.5 million followers or by calling themselves 'Team Joker Head Trader' and claiming on YouTube that they were significantly increasing their assets through cryptocurrency, the victims explained.

The victims suspect that the coin traders organized "price manipulation" as these incidents occurred simultaneously across multiple chat rooms on the same day. They gathered over 70 victims and filed a complaint against the suspects in April. Some victims suffered losses up to 10 million won, and there were cases where more than 1,500 people were connected to a single chat room, suggesting the number of victims could be higher.

Additionally, according to the victims, the suspects are still active, changing the names of promotional blogs or creating new group chat rooms.

During police investigations, the suspects reportedly stated, "We recommended coins we analyzed fairly, but unfortunately, the value dropped."

Jung Heonsu, legal representative and attorney at Summit Law Firm, said, "Unlike previous coin 'frauds,' this case is characterized by manipulation of cryptocurrency prices circulating within exchanges."

A police official stated, "Unlike regular stocks, there is a legislative gap in coin fraud cases, so if this case is judged as simple investment solicitation, it is difficult to consider it fraud. We are continuing to verify and investigate."