South Korean police arrested $472,000 in cryptocurrency fraudsters using group chat

South Korean police have arrested the ringleaders of a $472,000 crypto fraud gang that used a social media app’s group chat function to lure in unsuspecting victims.

According to MBN Money, the Incheon Metropolitan Police Agency stated that three men in their twenties, including a 26-year-old man, were arrested on fraud-related charges. At least ten other people have been detained in connection with the incident.

According to officers, the gang set up a group chat room on a social media platform. They allegedly dubbed the group “Investment Reading Room” and managed to recruit a number of unsuspecting crypto-curious social media users.

Moreover, the police noted that the alleged masterminds attempted to “deceive” members of the chat by recruiting “fake investors” to join the group.

These people “pretended to be professional investment advisors,” or people who had made huge profits by investing in cryptocurrencies.

At least ten people appear to have been duped by the ruse: they initially invested small sums, which they expected to yield high returns, with the masterminds providing payouts.

They were eventually persuaded to part with much larger sums of money, which they hoped would grow into huge profits.

However, the money appeared to run out at this point, and the investors allegedly found themselves unable to withdraw their stakes.

The 26-year-old is thought to be the operation’s ringleader, but police believe a number of other people “systematically committed” crimes to help the operation run smoothly.

The alleged victims were described by police as “college students” with an interest in cryptocurrency, “beginner investors,” and even “housewives.”