On February 20, police in Incheon, South Korea, confirmed the arrest of six individuals suspected of involvement in an over-the-counter (OTC) crypto scam. According to reports from Newsis, the suspects, ranging in age from 20 to 39, are accused of stealing $747,000 in cash during the fraudulent scheme.
The incident is said to have occurred in Incheon’s Songnim District on February 19, around 4 pm local time. The victim, who remains unnamed, had arranged to exchange approximately $747,000 for cryptocurrency through what they believed to be a discounted OTC trade with vendors they contacted via social media channels.
However, upon meeting the vendors at a designated location, the victim handed over the cash, which was then counted in the suspects’ van. After counting the money, the suspects allegedly pushed the victim out of the vehicle and fled the scene.
Following the victim’s report to the police, authorities utilized CCTV footage to identify the suspects’ vehicle, its owner, and the rest of the group involved in the scam.
This incident adds to a concerning trend of high-value OTC crypto thefts in South Korea. In January, police in Icheon, Gyeonggi Province, arrested an individual in his 20s on theft-related charges after he allegedly absconded with $10,700 in cash from a similar fraudulent transaction, promising to sell cryptocurrency at a discounted rate but failing to transfer any coins.
In response to these incidents, a police official issued a warning to the public, urging caution when engaging in OTC crypto transactions due to the rising number of fraud cases. Authorities emphasized the need for vigilance, particularly regarding offers of low-priced crypto sales or promises of high profits from investments in virtual currency.
Regulators in South Korea have expressed concerns about the proliferation of OTC-related crypto crimes and have sought additional powers to police the sector. In September 2023, regulatory authorities highlighted the OTC markets as a focal point for virtual currency-related crimes, including fraud and money laundering.
