South Korean Police Probe Counterfeit Cash Ring That Targeted Crypto Traders
Police in South Chungcheong, South Korea, are investigating a group accused of counterfeiting nearly 460 million won ($330,000) in fake bills to defraud cryptocurrency traders during face-to-face transactions. The suspects used a color printer to create counterfeit 50,000-won notes and attempted to exchange them for crypto assets in person, exploiting the rapid, informal nature of OTC crypto trades where cash verification is often weak. The scheme was discovered when a would-be victim detected poor-quality bills and alerted authorities. Three men were arrested; one was detained upon reentering South Korea after fleeing abroad. The group reportedly acted due to unemployment and financial hardship. Similar scams have been reported in Hong Kong, where counterfeit cash and even ritual “hell money” have been used in crypto deals, resulting in arrests and large seizures of fake notes. The Bank of Korea commended local police for preventing the circulation of counterfeit currency and urged public vigilance. The rise in in-person crypto-linked crimes includes “wrench attacks”—physical assaults to force crypto transfers—highlighting growing risks associated with in-person trades.
