Key Figure Behind $230 Million Crypto Fraud Arrested After Two Years on the Run

South Korean authorities have arrested a key suspect in a ₩320 billion (approximately $230 million) crypto-related investment scam, concluding a two-year international manhunt. The individual, identified as A, served as a high-level coordinator in a criminal syndicate that defrauded over 10,000 victims by promoting worthless cryptocurrencies under the guise of high-yield investments.

According to the Gyeonggi Southern Provincial Police Agency, the suspect managed internal data related to investor leads and distributed these to front companies posing as investment advisory firms. Victims were lured through deceptive marketing that promised returns of up to 20 times their original investment, often using fabricated expert endorsements and staged promotional content on platforms such as YouTube.

Between December 2021 and March 2023, the group issued and sold 28 unregulated digital assets via six unlicensed advisory firms and ten associated shell companies. These coins were artificially listed on overseas exchanges, where the group manipulated prices and controlled trading volume through coordinated schemes. To add further credibility, the perpetrators marketed the assets through “private sale” promotions, claiming these were exclusive early-stage offerings with limited availability.

The scheme resulted in more than 3.5 million fraudulent transactions and roughly ₩218.4 billion in digital asset sales. In addition, the group later launched a voice phishing operation starting mid-2022, targeting victims who had already incurred losses in the earlier scam. They falsely promised to reimburse these losses and managed to swindle another ₩107.2 billion from approximately 4,800 individuals.

To obscure the origins of the funds, the group engaged in a multi-layer laundering operation, cashing out proceeds in three stages. Police have identified and frozen 1,444 bank accounts used in the scheme and seized 22 Bitcoins (valued at ₩2.2 billion) believed to be part of the illicit proceeds. Authorities have also filed for asset preservation orders on ₩47.8 billion to aid in victim restitution.

The suspect fled to Japan in May 2023, later moving through Malaysia before settling in Australia. South Korean police secured an arrest warrant and invalidated his passport, coordinating internationally to block further movements. He was eventually arrested upon re-entering South Korea on May 19, 2025, through Incheon International Airport.

Police had previously referred 215 suspects to prosecutors in connection with the case, 12 of whom were arrested. Legal proceedings are ongoing.

A police spokesperson stated:

“This case demonstrates our commitment to pursuing cross-border economic crimes and dismantling fraudulent networks, regardless of how far suspects may run. We will continue tracking hidden assets overseas and work toward restoring losses to the victims.”