In an intriguing case from South Korea, a septuagenarian has drawn a one-year prison sentence for his involvement in a complex scheme of Bitcoin (BTC) based deceit. Identified by the initial A, the individual was reportedly roped into a voice phishing operation under the guise of a financial endeavor that would yield a 3% monthly commission.
Unbeknownst to A, the group hiring him was deploying his services as a smoke screen for their illegal activities. The ploy had him purchasing Bitcoin on a local exchange, using his own fiat resources, and subsequently forwarding the tokens to a wallet owned by the network. This effective obsfucation of their transaction activity, utilizing A, helped the group avoid the real-name authentication requirements imposed by South Korean authorities, ensuring their anonymity.
However, the truth was eventually unveiled. The funds transferred to A were revealed as illicit gains extracted by exploiting unsuspecting citizens via romantic scams. Through fabricated profiles on social media, the culprits catfished their targets who, under the delusive perception of newfound romance, ‘loaned” their scammer-partners funds or complied to financial demands under the threat of “legal trouble.”
A conceded to his tacit participation in these machinations during his trial, although claimed ignorance to the group’s foul play. The presiding judge acknowledged A’s remorse, and his resolve not to re-offend, as reasons for a relatively lenient sentencing.
Interestingly, this incident is indicative of a rise in crypto-related “romance” scams, predominantly targeting older victims, as noted by security providers in East Asia. Documented cases include a Japanese man in his fifties being defrauded of $90,000 by a so-called “foreign woman,” who lured him with investment and romantic promises.
Similarly, social media scams involving crypto and fiat have resulted in around $2 million of losses in Japan’s Fukuoka Prefecture in the first 10 months of 2022. Meanwhile, a South Korean study showed that most victims of “romance scams,” particularly those ensnared via social media, are women under 40 years old, often invested in BTC or other digital assets.
Evidently, while cryptocurrencies continue to create exciting opportunities and possibilities, their misappropriation in scams and frauds underscores the importance of thorough understanding, informed decision-making and heightened vigilance in the crypto space. That said, policy makers and exchanges are expected to strengthen their KYC processes and put more mechanisms in place to safeguard investors, especially those who are vulnerable and less tech-savvy.
Source: Cryptonews
