Authorities have apprehended a group of cunning fraudsters who lured unsuspecting investors into their web of deceit. Through an enticing open chat room, they swindled a whopping $18.8 million from their victims by promising fast returns on unlisted coins.
But their scheme didn’t stop there – they also posed as legitimate cryptocurrency experts, offering trading tips and delivering small profits to build trust before persuading members to invest in the elusive coins. Seungwon Lee, the lead investigator, reveals the shocking details of this elaborate con.
Unlisted coins
Beware of the devious unlisted coins that promised riches but only delivered disappointment. The masterminds behind this scam would disappear into thin air when investors demanded their returns or refunds. And as if that wasn’t enough, when victims tried to cash out, the gang would demand outrageous withdrawal fees. Refusal to comply meant being completely cut off from any form of communication.
In a daring operation on May 21, the Daegu Police Agency’s elite criminal task force apprehended several notorious suspects. But the thrilling chase is far from over as authorities suspect that six more dangerous criminals are still on the loose and have fled the country. The hunt has gone global as Interpol has been called in to issue red notices for these elusive fugitives.
Pig-butchering tactics
The notorious gang leader employed unorthodox methods to lure in fresh members. According to authorities, the mastermind behind the online forum would dangle the promise of job opportunities in Myanmar, enticing unsuspecting individuals to cross borders illegally and join their illicit ranks. Once recruited, the gang would seize their passports and phones, effectively holding them captive and forcing them to participate in fraudulent activities.
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The cunning leader of the infamous gang employed unorthodox tactics to entice new recruits. As per law enforcement, the mastermind would use a clever ploy on an online platform, offering enticing job opportunities in Myanmar.
Little did the unsuspecting individuals know, they were being lured into a dangerous web of crime. Once they crossed borders illegally and joined the gang, their passports and phones were confiscated, effectively trapping them in a life of deceit and illegal activities.
Nithin Kamath, the founder of Zerodha, posted on X,
“As the name implies, a pig butchering scam involves fattening the victim before butchering. Scammers gain the trust of users by using fake profiles. They use the pretense of love and friendship to gain the trust of users and then induce them to send money for jobs and high-return investments and steal the money. These scams are global, and their scope is staggering.”
Amidst a wave of international cryptocurrency crackdowns, the world was shocked on Monday as news broke of two Chinese nationals being apprehended by the United States Justice Department.
Their cunning scheme involved laundering a staggering $73 million through the unlikely disguise of pig-butchering. But the plot thickens, as authorities race against time to track down the stolen funds and have called upon Interpol for help in capturing six more suspects.