South Koreans lost $5 billion in 4 years due to crypto scammers
Over the past four years, South Koreans have lost more than $5 billion as a result of cryptocurrency scams. This is also partly related to why Korean regulators are steadily stepping up measures against digital currencies.
As the popularity of cryptocurrencies grows, so does the number of scammers luring tokens from locals. While in 2017, at the height of the “ICO boom”, there were about 41 cases of fraud related to digital currencies, in 2020 this figure exceeded 333 cases. Among them:
- 218 cases of cryptocurrencies theft
- 31 cases of illegal activity related to cryptocurrency exchanges
- 84 case of other crimes: fraudulent purchases and the closure of some cases initiated by the national police in previous years
Regulators do not sleep
From September 25th, the Government will strengthen control over compliance with obligations by cryptocurrency companies. In the absence of reports filed with the Institute for the Analysis of Financial Information, they will face a fine of up to 50 million won, which is the equivalent of $44,000, and imprisonment for up to 5 years. But even despite this and stricter tax rules for holders of crypto assets from 2022, 54% of South Koreans supported the introduction of taxes on digital currencies.
The last case of fraud
In early May, South Korean police arrested 14 people accusing them of $3.5 billion worth of crypto scams and defrauding more than 69,000 citizens since June last year.
According to local newspaper Hankyoreh, the case was the largest ever in a cryptocurrency rush. Together with it, the total losses of residents of the country in the equivalent of tokens exceeded $5 billion.