Large-Scale Crypto Fraud Unveiled

South Korean police today reported the arrest of 28 people they suspect of a crypto investment fraud operation. According to local news reports, the Gwangju Metropolitan Police Agency's Cyber Crime Investigation Unit led the investigation and conducted the raid against the alleged criminals.

Police spokespeople confirmed they had detained six of the group in custody, and a further 22 were charged without detention.

Victims and Financial Damage

Officers believe the group duped about 50 victims out of a combined total of around $1.3 million.

Investigators said the ring was active from July to December last year. Police spokespeople added that the gang's members told victims that they could make money by investing in little-known crypto assets.

False Promises and Worthless Coins

The ring reportedly told victims that these coins were about to be listed on major crypto exchanges.

After these listings, the gang allegedly told victims, investors could expect the prices of these coins to skyrocket.

However, police said that these coins were all **worthless and that none of the tokens had been listed on any exchange of notes.

"These coins were all 'worthless,' and none of the tokens had been listed on any exchange of note."

Elaborate Scam Set-Up

Officers also explained that the ring members posed as crypto asset 'experts' and tried to 'lure' victims onto what appears to be a bogus trading platform.

Police said the platform was not registered with the Financial Intelligence Unit, the regulator that governs the South Korean crypto exchange sector. The ring then proceeded to 'steal investment stakes,' police said.

Officers explained that the ring told victims their funds were safe and they could expect 'high profits' soon.

Ongoing Investigations and Legal Actions

Investigators noted that the operation was complex and that the ring had been divided into a 'sales team unit' and a 'public relations team.' The suspects were charged with several offenses, including organized crime.

Police said they were 'investigating additional crimes' related to the ring. South Korean police crackdowns have unearthed scores of bogus crypto exchanges in recent months.

Courts, meanwhile, have handed convicted offenders heavy sentences. Earlier this month, a judge sent a fake XRP exchange operator to prison for eight years.