USDT OTC ‘Robbers’ Detained in Gangnam District of South Korea

Authorities in Gangnam, a wealthy area of Seoul, South Korea, have apprehended 10 individuals suspected of defrauding victims in a fraudulent USDT OTC transaction.

According to Maeil Kyungjae, law enforcement officials reported that a “group” enticed a “victim” to a street in the Yeoksam Neighborhood.

Officers indicated that the “group” informed the “victim” and their companions that they would sell USDT tokens at a reduced rate.

USDT OTC ‘Thieves’ Target Seoul

Police stated that the event occurred at 12:42 AM on March 21. The involved parties seemingly connected online and settled on a price exceeding $74,000 for an unspecified quantity of USDT tokens.

According to officers, the “group” met the “victim” along with a few of their friends and requested to count the cash.

While feigning the counting of the banknotes, the “group” reportedly attacked the “victim’s group” and fled with the money—without transferring any tokens.

Law enforcement mentioned that they detained three suspects who attempted to escape in a vehicle “near the crime scene.”

Four additional individuals managed to flee “in another vehicle,” police noted, and were apprehended the same day in Anseong, Gyeonggi Province.

Two other suspects seem to have escaped to the southern port city of Busan, where local authorities arrested them.

The alleged mastermind, who police claimed “organized the crime and enlisted accomplices,” was captured four days later, “on the night of March 25, in Cheonan, South Chungcheong Province.”

Seoul’s Gangnam District. (Source: Fumihiko Ueno [CC BY 3.0])

Detectives Recover Cash and Gold During Raids

On April 1, police announced that their investigation “established” that the gang members initially intended to execute their scheme in Busan.

Authorities suggested that the gang may have targeted other crypto enthusiasts, with some members assigned to “identify and win over” crypto traders.

Police reported seizing approximately $37,000 in cash, along with “a gold necklace valued at around $4,750.”

Officers stated that the gang had utilized the stolen funds to acquire the necklace. The suspects have been formally charged and referred to the prosecution service.

A police representative indicated that investigators were searching for the “locations of additional accomplices” and “the remaining cash.”

Surge in Crypto OTC Crimes in South Korea?

The demand for over-the-counter (OTC) crypto trading has surged this year in South Korea, coinciding with the resurgence of the kimchi premium.

Kimchi premium prices at the time of writing for Bitcoin. (Source: Cryprice)

However, this increase has also resulted in a significant rise in criminal activity, with fraudulent USDT OTC cases now populating South Korean courtrooms.

On March 13, four individuals in their 20s and one in their 30s were detained after members of this group allegedly attempted to extort nearly $100,000 from two victims.

The group reportedly met two crypto traders outside a cafe, also in Yeoksam, and conducted a transaction.

The traders transferred an undisclosed number of USDT tokens to the group, according to police. However, other members of the suspected gang then allegedly approached the traders, claiming to be law enforcement officers.

These gang members purportedly instructed the traders to surrender the cash, asserting that they had been observed “illegally trading cryptoassets.”

The crypto traders questioned the legitimacy of the gang’s assertions and declined to hand over the money. The gang subsequently assaulted the traders and attempted to flee.

Trading volumes on the Upbit crypto exchange over the past three months. (Source: CoinGecko)

Police Advise Caution in OTC Trading

A police representative cautioned the public to “exercise particular vigilance” on April 1, adding:

“There has been a recent uptick in incidents involving offline [crypto] transactions. Criminals are seeking victims under the pretense of [crypto] traders.”

South Korea’s exports continued to grow last month, supporting confidence among policymakers that the economy will see a robust first quarter on semiconductor demand https://t.co/W1vog1ARgk

— Bloomberg Markets (@markets) April 1, 2024

In February, six suspected crypto fraudsters in Incheon absconded with approximately $747,000 in cash during another allegedly fraudulent OTC transaction.

Similar occurrences were also reported in Geumcheon in late February and Icheon in early January this year.

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