Suspected South Korean crypto fraudsters allegedly fooled a wealthy financier into parting with over $4.1 million, the nation’s police force said on March 25.

Per Chosun Ilbo, officers in Busan’s Haeundae District arrested a “group of people in their 20s and 30s.”

Police think the group “defrauded a financier in his 60s” by convincing him that he would receive 70% profits on his investment.

South Korean ‘Crypto Fraudsters’ Said Profits Would Materialize ‘in a Month’

The group of suspects were arrested on charges of aiding and abetting fraud.

Officers said that the group approached the financier in September 2022. Between the same month and December 2022, police said, the group convinced the alleged victim to make six separate payments.

They also told the financier that he could expect to receive his profits in just four weeks, police said.

Group Used Fake Documents, Police Claim

The group allegedly told the man that he should capitalize on “a boom time for crypto.” Police said the suspects “forged balance certificate files” to make it look like they were holding around $15 million worth of tokens.

The reality, police said, was that the group “barely had any virtual currency in their trading accounts.”

The group, police claimed, also sought to win the man’s confidence by using an accomplice to pose as a rich real estate agent working in Seoul’s affluent Gangnam District.

The accomplice pretended to sign a $3 million contract with the group, supposedly entrusting them with his money.

This contract also proved to be “forged,” police spokespeople explained.

Do Kwon went from crypto king to fugitive to the subject of an extradition contest between the US and South Korea. Here's what you need to know. https://t.co/2ghUBxJLL0

— Bloomberg Crypto (@crypto) March 25, 2024

Fraud Cases Rise as Crypto Booms

South Korean crypto fraudsters are becoming increasingly active in the crypto-keen nation. Earlier this month, a law firm manager was jailed for stealing customer money to make private crypto investments.

Also this month, police launched a probe into a crypto consultancy that reputedly preyed on elderly investors.

Officers think the firm fooled people in their late 50s and 60s into paying the firm for bogus “insider crypto tips.”

OTC-related crypto thefts are also on the rise, with officers last month arresting a “multinational” gang of suspected thieves.