Cambodia-Based 42 Billion Won Investment Fraud Ring Busted...129 Arrested

A criminal organization based in Cambodia that committed investment fraud worth tens of billions of won has been apprehended by the police.

A criminal organization that led investment fraud worth hundreds of billions of won based in Cambodia has been arrested by the police. Seoul Metropolitan Police Agency

The Cyber Crime Investigation Unit of the Seoul Metropolitan Police Agency announced on November 4 that it had arrested 129 individuals, including the ringleader, Mr. A, on charges of fraud and organizing a criminal group, and detained 19 of them. All suspects were handed over to the prosecution by October 31.

According to the police, from January to November of last year, the suspects allegedly defrauded 220 victims of 42.2 billion won by claiming on social networking services (SNS) and other channels that following investment advice from “experts” would yield high returns.

The criminal organization was found to have a pyramid structure divided into call center, fund management, shell account distribution, and money laundering teams. To avoid detection, they operated by blocking communication between the ringleader and each team. Mr. A reportedly placed his older brother and nephew in key positions, establishing a closed organizational structure based on family trust.

The police investigation began after member B, who was tasked with delivering shell accounts, escaped and reported the organization following assault and confinement in Cambodia.

Subsequently, the police confirmed the organization’s Cambodian base and operational structure through financial information analysis and account tracking. They also seized 788.92 million won in criminal proceeds from Mr. A’s residence, securing a pre-indictment preservation order from the court.

A police official stated, “We plan to work closely with relevant agencies to quickly apprehend suspects who are staying overseas, and we will thoroughly carry out procedures to recover criminal proceeds.” The official also cautioned, “Most investment offers promising high returns via SNS or messenger are scams, so please be especially vigilant to avoid falling victim.”