OTC crypto crime surge: South Korean police arrest multinational gang

South Korean authorities have apprehended a multinational gang allegedly involved in a surge of over-the-counter (OTC) crypto crimes. The suspects, accused of luring a victim into a bogus OTC transaction, were arrested following an incident involving illegal confinement and aggravated theft. This development underscores the growing risks associated with in-person crypto transactions, prompting law enforcement to issue warnings to the public.

Arrest of multinational gang

On December 3, 2023, officers from Geumcheon Police Station in Seoul arrested six individuals, including a South Korean man in his 30s and an Egyptian man in his 20s, on charges of illegal confinement and aggravated theft. The arrests followed an incident in the Gasan District of Seoul, where the gang allegedly locked a Vietnamese woman in a car after stealing her cell phone and a bag containing approximately $127,630 in cash. Despite law enforcement’s quick response, the suspects initially managed to flee the scene but were later apprehended.

While the accused individuals maintain their innocence, alleging that they were victims of a cryptocurrency scam orchestrated by the woman they confined, authorities remain cautious. The suspects claimed that the woman was a delivery person for the scam organizers. However, police investigations continue, and the suspects have been released on bail pending further proceedings by the prosecution service.

Rising trend of OTC crypto crimes

This incident is part of a concerning trend in South Korea, with law enforcement reporting a notable increase in OTC crypto-related crimes. In a separate case in Incheon, six individuals were arrested concerning a suspected $747,000 OTC trade on February 20. Additionally, in Icheon, Gyeonggi Province, a suspected fake OTC trader absconded with a crypto buyer’s $10,700. Police have cautioned the public about the risks associated with in-person OTC crypto trades, emphasizing the need for heightened vigilance and awareness.

The arrest of a multinational gang in South Korea highlights the escalating threat of OTC crypto crimes, prompting authorities to urge caution among cryptocurrency traders. As law enforcement continues to tackle these illicit activities, individuals are advised to exercise diligence and employ secure trading practices to mitigate the risks associated with in-person transactions. 

The prosecution service’s ongoing handling of the cases underscores the seriousness with which authorities address the issue. In light of these developments, stakeholders in the cryptocurrency ecosystem are reminded to remain vigilant and adhere to regulatory guidelines to safeguard against potential financial losses and fraudulent schemes.