Sending Fake Coins with the Same Name
High Risk of Fraud with Presentation of Payment Guarantees and More
Cases of purchasing fake coins after being lured by the temptation of selling well-known cryptocurrencies listed on major exchanges at low prices are increasing. On the 14th, the Financial Supervisory Service issued a consumer advisory regarding these new types of fraud schemes.
Mr. A received an offer through social media (SNS) to sell the famous coin B at about 30% of its market price. The company explained that coin B, already listed on a major domestic exchange, was soon to be listed on another major exchange. They further added that due to unavoidable reasons, they were supplying additional quantities at a low price on the condition of holding them for a certain period.
The company forged a payment guarantee letter to reassure Mr. A. Mr. A transferred the investment funds to the company’s account, believing he had received coin B in his personal wallet. However, the coin was a fake with only the name of the famous coin but no real substance, and the company deleted its SNS account and disappeared.
On the 12th, the current prices of cryptocurrencies including Bitcoin are displayed at the Bithumb Customer Center in Seocho-gu, Seoul. [Photo by Yonhap News]
These fake coins may be forcibly reclaimed by fraudsters and disappear, making tracking difficult. In particular, investment solicitations claiming to have signed an over-the-counter supply contract with the relevant foundation or presenting payment guarantee letters (commitment letters) are highly likely to be scams.
Accordingly, the Financial Supervisory Service issued a consumer alert to prevent the spread of virtual asset-related investment fraud and advised consumers not to be deceived by claims of selling virtual assets at prices lower than market value.
The Financial Supervisory Service urged, "Investment solicitations claiming to have signed over-the-counter supply contracts or presenting payment guarantee letters are highly likely to be scams," and warned, "Be cautious of acts that intentionally present forged guarantee letters to reassure investors."
Meanwhile, the U.S. Securities and Exchange Commission (SEC) approved 11 types of Bitcoin spot exchange-traded funds (ETFs) on the 10th (local time), which led Bitcoin to surge to as high as 65 million KRW. On the 12th, CoinMarketCap showed Bitcoin trading between a high of $48,969 and a low of $45,687.
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