A woman claiming to be a former North Korean soldier is at the center of a cryptocurrency scam that has reportedly defrauded more than 20 victims in South Korea.
Local authorities say the scheme siphoned nearly 1 billion Won—around $728,000—through a bogus crypto investment platform.
According to police, the defector, who had resettled in South Korea over a decade ago, was recruited by a Chinese national to promote a fraudulent trading app. She then enlisted two other North Korean defectors before widening her pitch to South Korean citizens, promising high returns on crypto investments. Victims transferred funds, which were then funneled into what turned out to be a fake platform.
The app initially functioned, allowing early investors to cash out. But by early July, it became unresponsive and froze withdrawals, leaving later participants with nothing. Authorities believe the woman may have also lost money, but she remains under investigation as a central figure in the fraud.
Police are also examining whether the two defectors she recruited knowingly helped perpetuate the scam. If the case moves to trial, they may be called both as victims and as witnesses.
This incident adds to a growing list of crypto fraud cases in South Korea. In a separate operation earlier this year, dozens were arrested for operating similar fake investment rings, stealing hundreds of thousands of dollars from unsuspecting investors. Investigations into higher-level organizers are still ongoing.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.