South Korean Police Investigate Counterfeit Cash Ring Targeting Crypto Traders
South Chungcheong province police are investigating a criminal group that manufactured counterfeit 50,000-won notes to defraud cryptocurrency traders in in-person transactions. Last year, authorities seized 9,188 fake notes worth about 459.4 million won (approximately $330,000). The suspects allegedly printed these notes using a color printer and coordinated face-to-face exchanges of cash for digital assets through online contacts.
The scheme was uncovered after a prospective victim noticed the poor quality of the counterfeit notes during a meeting in Asan City and alerted the police. Similar counterfeit-cash crypto scams have been reported in Hong Kong. In July 2024, three suspects in Mong Kok defrauded a businessman of $400,000 in USDT, and over 11,000 counterfeit notes were seized. Two months earlier, three crypto exchange staff were arrested in Hong Kong for a USDT-for-cash fraud involving counterfeit notes printed on joss paper (hell money), with HK$128,000 involved.
In Korea, three men in their 30s to 40s, identified as Mr. A, Mr. B, and Mr. C, have been linked to the case. Mr. A and Mr. C were arrested in October and November respectively. Mr. B fled to Cambodia but was detained following an Interpol red notice after reentering Korea on November 5, 2024. Investigators reported that the suspects claimed their crimes were to cover living expenses while unemployed. Mr. A and Mr. B have been indicted, while Mr. C remains under investigation with a bench warrant pending reapplication after supplementary investigations.
The Bank of Korea awarded the officers involved in preventing the spread of counterfeit cash and urged the public to inspect cash in well-lit areas, verify hologram movement, and use the central bank's counterfeit-money-detection app.
