In the first half of 2024, crypto-related arrests in South Korea doubled, indicating a rise in digital crime in the country.
Reasons Behind the Rise in Arrests
Data from South Korea’s National Police Agency indicates that there were 991 arrests for crypto-related crimes in H1 2024 alone, more than double the 482 arrests recorded for the entirety of 2023. A significant factor driving this increase is the proliferation of illegal deposit-taking schemes that promise victims unrealistic returns. Reports state that the number of these schemes rose to 115 in the first six months of 2024, indicating that scammers are becoming increasingly active.
Tactics of Crypto Scammers
Scammers typically target individuals by offering investment opportunities that appear too good to be true. They use complex jargon and celebrity endorsements to create a false sense of legitimacy. These unlicensed schemes are particularly dangerous as victims often find themselves with little recourse when they fail. A notable example from 2021 was the V Global scheme which defrauded over 50,000 victims of around $1.59 billion.
How to Protect Yourself from Crypto Fraud
Given the rising incidence of crypto scams, it’s crucial to exercise extreme caution. Recommendations include:
* Verify licenses: Always check if an investment platform is officially registered and licensed. * Research thoroughly: Conduct independent research on any crypto project. * Beware of unrealistic promises: If an offer guarantees high returns with no risk, it’s likely a scam. * Seek independent advice: Consult with a trusted financial advisor. * Report suspicious activity: If you encounter a suspicious scheme, report it to the authorities.
The significant rise in crypto-related arrests in South Korea during the first half of 2024 serves as a critical warning. Investors must remain educated and vigilant to protect their assets.
