OTC Crypto Thefts Surge in South Korea: Beware of Low-Price Deals and High-Value Scammers!

Police in Incheon, South Korea have confirmed the arrest of six individuals suspected of being involved in over-the-counter cryptocurrency scams on February 20th.

South Korean scammers arrested after fleeing with $747,000 in cash.

Tim Alper Last updated: February 20, 2024 22:00 EST | 2 min read

Six suspected OTC crypto scammers were arrested in Incheon, South Korea, police in the city confirmed on February 20.

Per Newsis, officers said the suspects were all aged between 20 and 39. Police think they stole $747,000 in cash as part of a bogus over-the-counter (OTC) trade.

Are OTC Crypto Thefts on the Rise in South Korea?

Police say the incident took place in the Songnim District of Eastern Incheon at around 4 pm on February 19.

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An unnamed victim said they had arranged to swap about $747,000 for crypto. The victim said that they had agreed on a cut-price deal for the coins with vendors they presumably contacted via social media channels.

However, the vendors reportedly arrived at a meeting point, took the victim’s cash, and counted the money in their van.

Once they had finished counting, the suspects reportedly “pushed” the victim out of their vehicle and sped off.

The alleged victim filed a police report, and officers said they used CCTV footage to identify the vehicle, its owner, and the remainder of the group.

The number of high-value OTC crypto thefts is climbing in South Korea. In early January, police officers in the nearby town of Icheon, Gyeonggi Province, arrested a man “in his 20s” on theft-related charges.

Police said this man similarly offered to sell crypto at a low price, but instead made off with $10,700 in cash. The suspect took the money and drove off in a car without transferring any coins.

Police Issue Warning: Be Extra Careful!

Speaking after the alleged incident in Incheon, a police official told South Korean media outlets:

“We are investigating the specific circumstances of this crime, including the sources of the funds involved.”

The official added:

“There has been a rise in cases of fraud that involve enticing people to sell virtual currency at a low price. Others offer victims the chance to make large profits by investing in virtual currency. We ask the public to be especially careful.”

In September 2023, regulators said that they wanted new powers to police the OTC crypto sector.

Speakers at an event involving the Financial Services Commission and the Seoul Southern District Prosecutors’ Office Virtual Asset Crime Joint Investigation Team claimed domestic OTC markets had become “the epicenter of virtual currency-related crimes.”

Regulators claimed the growing list of OTC-related crypto crimes now includes “fraud and money laundering.”

Q&A: What You Need to Know About OTC Crypto Thefts in South Korea

Q: How can I protect myself from OTC crypto theft?

A: When engaging in OTC crypto trades, exercise caution and follow these guidelines: – Always verify the credibility of the vendors. – Meet in public places with surveillance cameras. – Avoid making large transactions with strangers. – Use a reputable escrow service for added security.

Q: Are OTC trades inherently riskier than regular crypto exchanges?

A: Not necessarily. OTC trades can provide advantages like better pricing and larger transaction volumes. However, it is important to be vigilant and do thorough research on the vendors before participating in any trade.

Q: What steps are regulators taking to combat OTC crypto thefts?

A: Regulators in South Korea are pushing for increased powers to oversee the OTC crypto sector. They aim to crack down on fraudulent activities by implementing stricter regulations and conducting joint investigations with relevant authorities.

Q: Is it safer to trade on established crypto exchanges?

A: Established crypto exchanges often have stricter security measures in place compared to individual OTC trades. However, it is still essential to practice due diligence and follow proper security protocols regardless of the trading platform.

Looking Ahead: Strategies and Investment Recommendations

As OTC crypto thefts continue to surge in South Korea, investors and traders should remain cautious. Here are some strategies and recommendations to consider:

1. Research and verify: Before participating in any OTC trade, thoroughly research the credibility of the vendors and verify their identities. Don’t rely solely on social media platforms for verification.
2. Secure transactions: Whenever possible, use escrow services to ensure secure transactions and mitigate the risk of fraud.
3. Vigilance on price deals: Be wary of deals that seem too good to be true. Low-price offers may be a red flag. Always compare prices with reputable exchanges to ensure fair market value.
4. Stay updated: Follow news and regulatory updates to stay informed about any changes or measures taken to combat OTC crypto thefts.

By implementing these strategies and staying informed, investors can minimize the risks associated with OTC crypto trades.

References:

1. Wintermute reports 400% surge in OTC crypto trading volumes
2. Defendant pleads guilty to drug-related charges and forfeits $150 million worth of cryptocurrency
3. Regulators seek new powers to police the OTC crypto sector
4. Follow Us on Google News

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What are your thoughts on the surge of OTC crypto thefts in South Korea? Have you ever encountered suspicious OTC offers? Share your experiences in the comments below and don’t forget to share this article with your friends to raise awareness about the risks involved.

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