'5 Years Since Fraud Occurrence' Psychiatric Treatment and Cancer Recurrence... It Was Devastating [Coin Fraud Republic]

Special Feature <Coin Scam Republic - They Were Calculated>

③-⑴ Driving Despite Cancer Recurrence to Repay Interest (Exclusive Interviews with Victims)
Losing 280 Million Won Including Friends' Money in Old Age
Coin Scams Leading to Retirement Bankruptcy and Family Breakdown

The investment started out of guilt. Lee Jeong-sook (pseudonym), a woman in her 50s living in Ulsan, battled salivary gland cancer for nearly five years. "Because I was sick, I wanted to help even a little, and since I was ill, hospital bills kept coming... but it backfired..." Lee, who was interviewed by Asia Economy on the 9th, could no longer continue speaking. In May 2019, she invested 80 million won by combining matured savings and borrowed money through Shim Soo-young (pseudonym), then the head of Inter Coin Capital (ICC) Ulsan Center. This was around the time when Bitcoin prices began to stir around the third halving event on May 4, 2020.

"At first, they said they would pay interest, so I entrusted the money. They said if you entrust your money, they'll send you on trips, pay dividends, and even give stocks if they get listed on NASDAQ, so I just put the money in without much thought."

Four months after investing, she realized she had been scammed. She called the Ulsan center dozens of times a day. Her hands trembled so much that she dialed the wrong number. When she finally got through, an ICC official dodged by saying, "The server is being upgraded." At first, she believed that. "I kept waiting but started feeling uneasy. I was just going back and forth on the site all day." She also tried contacting Mr. Jo (known as the ICC scam case's main culprit), who was the Ulsan center head and ICC's Korean chief, but received no response.

Before ICC abruptly shut down its website and electronic wallets without notice, she even attended the 'ICC 1st Anniversary Event' held at the Saemaeul Geumgo Training Center in Jeju in September 2019. She also went to investment briefings held in Busan and Daejeon.

"When the briefing was held in Ulsan, Mr. Jo and his daughter both came. At the anniversary event in Jeju, they said people came from Japan, China, India, and other countries, and it was a big event. Shortly after the event ended, they suddenly shut down the site, and everyone was stunned."

Five years have passed since then. The money borrowed for investment was rolled over with other loans. She is barely paying the interest. Her husband does not know about the scam. Throughout the interview, she anxiously said, "My husband and in-laws must not find out."

What troubled her the most was introducing ICC to acquaintances. "I introduced it to friends without really knowing properly. Since the outcome was bad, I feel so sorry and guilty."

She repeatedly said "I'm so sorry" throughout the interview.

She suffered alone, developed insomnia, and her speech became increasingly slurred due to stress. Then, at the end of 2019, she heard that her salivary gland cancer had recurred. It was the year she had hoped to be cured after five years of battling cancer following her first surgery. "I thought about giving up on life," she said, but was persuaded by her family to undergo reoperation at the end of 2019.

"I should be resting, but since September two years ago, I've been working as a disability activity assistant. Taking care of children, driving them around. Since money goes out, I have to do this at least."

The Korean Society for Fraud Prevention has been holding a tent protest for 11 months in front of the Seoul Central District Court in Seocho-dong, Seoul. (Photo by Kim Min-young)

Reimbursed 180 million won after introducing friends... Scam groups like Mr. Jo must be isolated from society

Kim Seong-yong (pseudonym), 75 years old this year, got involved in coin investment after a business trip to Jeju in early June 2019. Shin Sung-hoon (pseudonym), then the Jeju center head, explained ICC directly at the center and encouraged investment.

He initially invested 30 million won. He always kept cash in his account for business funds. This became his downfall. Later, he added another 70 million won. He used money meant for business. "ICC promoted profits through arbitrage, and I felt there was some truth to that. It was when the 'Kimchi premium' (Bitcoin trading at higher prices domestically than overseas) was a hot topic. I even went to the Seoul Sadang headquarters several times to check if they were playing tricks."

Kim introduced ICC to six friends. The total amount invested by the six was 180 million won. When ICC failed to return the money as promised, he reimbursed most of the money his friends had invested. "My friends trusted me and entrusted that money to ICC." Including his own 100 million won investment and his friends' funds, he lost a total of 280 million won to the scam organization.

He worked for Daelim Industrial and Kyungnam Enterprise in Saudi Arabia for 10 years in the 1970s. He was also a site manager during the construction of a famous domestic amusement park. Having worked on-site for nearly 30 years, he started his own business in his early 50s. He ran an automotive parts company in Gyeonggi Province for over 20 years and prided himself on his business experience.

"I never thought I'd be scammed like this. At least I can endure because I've been in business for a long time. Still, losing nearly 300 million won is a big blow. Including the business loan I used for investment, I pay 6 million won in interest every month. My wife? She vaguely knows but doesn't know the details."

He said most people harmed by ICC are in a state of despair. It's understandable since five years have passed since the ICC scam broke out, but the trial of Mr. Jo, the main culprit, is only in the first trial stage. "I'm from a generation that worked hard to get back up. I think I made a bad investment and will work again. Many families have broken down. How can you handle it when you borrow money from banks and introduce friends? I've seen friends who just shut themselves in and gave up on life."

Kim's words are not exaggerated. The Korea Scam Prevention National Association appealed to national agencies such as the Seoul Metropolitan Police Agency, stating, "The first ICC incident occurred in 2018, and victims have shed tears to get this far," and "There have been extreme cases, psychiatric treatments, cancer treatments, and the aftereffects of scam damage are indescribably tragic."

Kim Min-jung (pseudonym), who played a leading role in filing a complaint against FVP Trade in April this year for violations of the Act on the Aggravated Punishment of Specific Economic Crimes (fraud) and the Act on the Regulation of Similar Receipt of Money, said, "Many people who were scammed in coins and fell into debt went out to earn money, so there are almost no people to lead complainants or respond to police investigations," adding, "I myself lost nearly 100 million won to FVP, which ICC scam leaders conspired again. But when I see the elderly who have been holding out in protest tents for 11 months without going home, I only feel pity. That's why I took the lead and have been dedicated to this (lawsuit)."

Kim said scam groups like Mr. Jo must be punished quickly and isolated from society. "People like Mr. Jo must be isolated from society. Individuals like us can't do it. The state authority can. Even now, if you go to Teheran-ro in Gangnam, Seoul, scam groups are all over. If we leave these scammers alone, what about our country's future? It's obvious."

Kim regretted, saying, "I don't even want to look at coins anymore. I was a fool." "You shouldn't believe in high returns. If someone talks about high returns, it's 100% a scam." It was a painful warning from a 75-year-old man.

A banner warning about cryptocurrency scam victims is hung in front of the Seoul Central District Court in Seocho-dong, Seoul. (Photo by Kim Min-young)

30% of personal bankruptcies are due to coin scams... Aftereffects include family breakdown and old-age bankruptcy

Experts warn that coin scams do not only cause personal asset damage. Most victims suffer conflicts with family, and some voluntarily isolate themselves socially by cutting off all external relationships. Elderly victims find it harder to recover than younger ones, leading to a more serious problem called 'old-age bankruptcy.'

Yoon Jeong-won, head of the Seoul Personal Rehabilitation and Bankruptcy Support Center at the Korea Legal Aid Corporation, told Asia Economy, "In cases of elderly bankruptcy, there is no time to start over, no income sources like jobs to regain economic power, and psychological shock worsens health, increasing treatment and living expenses," adding, "Relationships with family deteriorate, leading to family breakdown (divorce, estrangement from children), creating a vicious cycle."

According to the '2023 Personal Bankruptcy Case Statistical Survey Report' on the Seoul Rehabilitation Court website, last year, debtors aged 50 and over accounted for 76.96%, the majority. The proportion of investment failures or scam victims surged from 2% in 2019 to 12% in 2023, with coin scams estimated to account for about 20-30% of that.

Yoon said, "There have been scams disguised as financial products guaranteeing fixed returns with bait like high returns and high dividends, multi-level marketing scams, and scams claiming instant riches through virtual assets linked to coins. Although there are no exact statistics on the proportion of coin scams, it feels like about 20-30%."

The problem is that as the super-aged society approaches and the elderly population increases, old-age bankruptcy will inevitably rise. Ultimately, victims of coin scams become economically vulnerable, and as their numbers grow, the state's welfare costs will also increase, increasing the national fiscal burden.

Yoon said, "Elderly people who go bankrupt due to scams eventually become basic livelihood security recipients and must rely on government-provided benefits, which will be a significant burden on taxpayers."

We plan to conduct in-depth investigative reporting on 'virtual asset investment scams.' We will strive to establish comprehensive countermeasures to eradicate coin crimes. Please send tips to (lsa@asiae.co.kr). We will investigate and report thoroughly.

▲Team Leader Lee Seon-ae, Manager △Kim Min-young, Cha Min-young, Kim Dae-hyun, Hwang Yoon-joo Reporters