Local authorities say the scheme siphoned nearly 1 billion Won—around $728,000—through a bogus crypto investment platform.

According to police, the defector, who had resettled in South Korea over a decade ago, was recruited by a Chinese national to promote a fraudulent trading app. She then enlisted two other North Korean defectors before widening her pitch to South Korean citizens, promising high returns on crypto investments. Victims transferred funds, which were then funneled into what turned out to be a fake platform.

The app initially functioned, allowing early investors to cash out. But by early July, it became unresponsive and froze withdrawals, leaving later participants with nothing. Authorities believe the woman may have also lost money, but she remains under investigation as a central figure in the fraud.

Police are also examining whether the two defectors she recruited knowingly helped perpetuate the scam. If the case moves to trial, they may be called both as victims and as witnesses.

This incident adds to a growing list of crypto fraud cases in South Korea. In a separate operation earlier this year, dozens were arrested for operating similar fake investment rings, stealing hundreds of thousands of dollars from unsuspecting investors. Investigations into higher-level organizers are still ongoing.

The post Crypto Scam Led by Alleged North Korean Defector Unravels in South Korea appeared first on Coindoo.

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Filed under: Bitcoin - @ July 11, 2025 8:01 pm