Police Arrest Mastermind Behind 4.5 Billion Coin Scam... Living on the Run After Plastic Surgery

158 Victims, 16 Billion KRW Received
14 Suspects Including Fraud Gang Referred

The police have arrested a group that embezzled approximately 4.5 billion KRW from 158 victims through virtual asset investment fraud.

Photo of Mr. A's arrest (left) and cash found at Mr. A's hideout (left). [Photo by Seoul Metropolitan Police Agency, Metropolitan Investigation Unit, Financial Crime Investigation Division]

On the 29th, the Financial Crime Investigation Unit of the Metropolitan Investigation Division at the Seoul Metropolitan Police Agency announced that they had arrested two individuals, including the mastermind, a man in his 40s named Kim, on charges of fraud and violation of the Act on the Regulation of Conducting Fund-Raising Business without Permission. Seven recruiters were sent to prosecution without detention. Additionally, five people who helped Kim by introducing him to a plastic surgery clinic, providing burner phones, bank accounts, and escape funds were also sent to prosecution without detention.

The group set up offices nationwide and deceived victims by promising to pay 18% monthly returns on investments in a virtual asset mining business. From November 2021 to June 2022, they collected about 16 billion KRW from 158 victims and embezzled approximately 4.5 billion KRW.

During several months on the run, Kim frequently changed his whereabouts and meticulously evaded the investigation by using burner phones and bank accounts. He underwent plastic surgery worth about 21 million KRW, including double eyelid, nose, and facial contour surgeries, to make his appearance unrecognizable, and wore a wig to thoroughly conceal his identity. The police used all possible investigative techniques over 10 months, including analyzing calls, bank accounts, and search histories of related persons, to identify and arrest the suspect’s hiding place.

The police discovered and seized 100 million KRW in cash at Kim’s hiding place and preemptively froze 1.3 billion KRW of assets belonging to Kim and others before prosecution to prevent disposal of criminal proceeds. It is currently known that Kim used all the criminal proceeds for his escape activities but shows no remorse.

A police official stated, “We will continue to pursue and arrest offenders who destroy the lives of ordinary citizens. We will also respond strictly to crimes involving aiding fugitives that obstruct the exercise of national investigative authority.”