Cryptocurrency fraudsters stole a record $ 232 million worth of digital tokens

Law enforcement officials in South Korea have exposed a fraudulent company that sold unreliable cryptocurrencies. The fraudsters defrauded their investors of at least $ 232 million.

It is noted that 215 people were detained as part of the investigation, 12 of whom are in custody.

The greatest damage was caused by a YouTube blogger. He involved his channel subscribers in a fraudulent scheme. The blogger’s identity has not been disclosed, but it is known that his channel had 620,000 subscribers.

It is worth adding that from December 2021 to March 2023, the blogger was the head of an investment company.

As part of the fraudulent scheme, investors were offered to invest in 28 virtual tokens and promised a 20-fold return. Among the cryptocurrencies offered were those issued by the company itself.

Most of the virtual coins had no real value. The appearance of an increase in the value of cryptocurrencies was created through manipulation.

In particular, fraudsters artificially increased the value of tokens in order to sell them to small traders at the highest possible price. As a result, the value of the asset decreased, and investors lost money.

In total, more than 15,000 people were affected by the fraud. They invested at least 325.6 billion won, or $ 232 million, in the company.

As a reminder, the founder and CEO of cryptocurrency marketplace Gotbit, 26-year-old Russian Alexei Andryunin, was detained in Portugal at the request of the United States. The US Department of Justice accuses him and three other market makers of market manipulation and fictitious trading in cryptocurrency tokens.