Creating Fake Exchanges to Induce Investment Fraud... Police Intensify Crackdown in First Half of the Year

Police to Intensify Crackdown on 'First Half Year Investment Leading Room Fraud'

The National Police Agency's National Investigation Headquarters announced on the 28th that it will intensively crack down on investment leading room frauds until June.

Illegal investment leading rooms are characterized by deceiving victims into investing by promising principal guarantees and high returns.

There have been cases where they meticulously set up fake exchanges and reassured victims by paying some profits for small investments. They committed crimes by paying 50% profits within a few days for a 100,000 KRW deposit by giving 50,000 KRW, or paying 500,000 KRW as profit for a 1,000,000 KRW deposit, then disappearing when the principal withdrawal was requested.

They also committed fraud by sending bait messages guiding investments in rapidly rising stocks, stocks scheduled for listing, and coins. There were cases where they pre-purchased virtual assets with low market capitalization and trading volume listed on overseas exchanges, manipulated prices, or directly issued coins and created false information with their own capital to promote them.

The police urged that if an unknown person recommends investment guaranteeing principal and high returns, it is essential to verify with financial authorities.

The police stated that they will expand information sharing with related institutions such as the Financial Services Commission and the Financial Supervisory Service to seek effective methods for apprehending criminals and preventing damage, and will do their best to track criminal proceeds to the end.