South Korean Police Probe Counterfeit Money Ring That Focused Crypto Merchants – Decrypt

Police in South Chungcheong province are investigating a felony group accused of producing counterfeit Korean received payments and utilizing them to defraud cryptocurrency merchants throughout in-person transactions.

In accordance with Chosun Ilbo, the group was present in possession of 9,188 pretend 50,000-won notes, with a worth of about 459.4 million received ($330,000), final yr. Investigators stated the suspects printed the payments utilizing a coloration printer and contacted crypto merchants on-line to rearrange face-to-face exchanges of money for digital property.

The scheme unraveled when a potential sufferer observed the poor high quality of the notes throughout a gathering in Asan Metropolis and refused to finish the transaction, as an alternative alerting police.

The usage of counterfeit money in crypto transactions shouldn’t be new. Such scams exploit the velocity and informality of face-to-face trades, the place giant sums of cash can change arms shortly and verification of banknotes could also be restricted. Hong Kong, particularly, noticed a wave of comparable instances final summer time, exhibiting how counterfeit foreign money has develop into a recurring threat in over-the-counter crypto markets.

In a single Hong Kong case in July 2024, police arrested three individuals accused of defrauding a businessman of $400,000 in USDT in Mong Kok, a well-liked industrial district. Officers seized greater than 11,000 counterfeit banknotes in that raid, exceeding the entire variety of pretend notes confiscated in Hong Kong throughout the complete earlier yr.

Two months earlier, police in the identical space arrested three cryptocurrency change workers members for allegedly conning a buyer out of HK$128,000 ($16,000) in a USDT-for-cash transaction. The suspects used “hell cash,” pretend notes printed on joss paper historically burned in rituals which are simply obtainable at retailers in Hong Kong, to deceive the sufferer.

Within the South Korea case, three males of their 30s and 40s, recognized solely as Mr. A, Mr. B and Mr. C, have been arrested in reference to the scheme. Police arrested Mr. A and Mr. C final October and November, whereas Mr. B fled to Cambodia. An Interpol purple discover was issued for his arrest and he was detained upon reentering South Korea by way of Incheon Airport from China on Nov. 5 this yr.

Investigators stated the suspects claimed they dedicated the crimes to cowl dwelling bills whereas unemployed.

Mr. A and Mr. B have been indicted, whereas Mr. C stays below investigation after a bench warrant was initially rejected. Police stated they plan to reapply as soon as supplementary investigations are full.

The officers concerned within the case acquired an award for stopping the unfold of counterfeit money from the Financial institution of Korea on Friday. The central financial institution, which presents the prizes twice a yr, stated the group made a big contribution to apprehending counterfeiters.

In a press release, the financial institution urged the general public to examine money fastidiously in well-lit areas, verify hologram motion whereas counting payments, and report suspected counterfeit cash instantly. It additionally pointed to its revamped counterfeit cash detection app as a device for verifying banknotes.

The case comes amid a broader rise in crimes linked to in-person interactions. Over the previous yr, authorities and safety consultants have warned about a rise in so-called “wrench assaults,” that are bodily assaults aimed toward forcing victims to unlock crypto wallets or switch funds.

Jameson Lopp, chief expertise officer of crypto safety agency Casa, has documented a minimum of 66 bodily crypto-related assaults in 2025 to this point, together with kidnappings and residential invasions concentrating on buyers, influencers and even their relations.