Seoul Police Arrest 14 in $12.8 Million Crypto Mining Fraud: Report

The Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency has arrested 14 people involved in a $12.8 million (16 billion won) cryptomining scam.

The head of the operation, a man in his 40s identified only by his last name Lee, did everything he could, including undergoing plastic surgery, to avoid detection by law enforcement.

Mastermind had plastic surgery to avoid capture

Authorities in the South Korean capital announced on August 30 that Lee had been arrested after a 10-month manhunt.

He is accused of running a fraudulent virtual asset mining business that defrauded 158 victims of their investments between November 2021 and June 2022.

According to police, the suspect embezzled 4.5 billion won ($3.6 million) of the total 16 billion won collected from the victims. To maintain the illusion of a legitimate operation, he employed a network of recruiters, including four top headhunters and four mid-level agents, who were instrumental in convincing people of the supposed profitability of the business.

The scheme began to unravel in July 2022, when the Seoul Metropolitan Police Agency launched an investigation after collecting 21 lawsuits and accusations filed against the perpetrator at various police stations across the country .

The investigation revealed the lengths to which Lee went to avoid capture, including spending 20 million won on plastic surgery to alter his appearance and evade authorities.

Suspect arrested after 10-month manhunt

Despite his efforts, the alleged criminal’s luck ran out when police arrested him earlier this month. He had been on the run since September last year after failing to turn up for a background check on his arrest warrant.

During his time underground, Lee was assisted by the office manager of the law firm he had hired. The office manager allegedly helped him escape by finding a plastic surgery clinic willing to perform the procedures and provided him with a fake phone to further throw off investigators.

In addition to his arrest, the authorities also arrested the eight recruiters who played a key role in the fraudulent operation. These individuals were handed over to the prosecutor’s office in September of last year and at the beginning of this month, respectively.

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