• South Korean police are investigating a possible $8 million crypto scam involving 40 victims who were tricked into buying a potentially worthless or non-existent crypto-asset.
• The victims were allegedly told they could recoup their failed investments by buying the unlisted Epay Coin, which the masterminds claimed would be listed on major overseas exchanges, such as Binance and Huobi.
• Binance officials have said they had never heard of the coin in question.
The South Korean Police is currently investigating a possible $8 million crypto scam involving 40 victims. The alleged scammers posed as a “loss compensation team”, claiming to provide a way for the victims to recoup their failed investments. They offered a crypto-asset called Epay Coin, which they claimed would be listed on major overseas and domestic exchanges such as Binance, Huobi, Upbit, and Bithumb.
The victims were told they could access the coin via a private sale and then expect “big profits” after the token was listed. However, the law firm For You Law, which brought the case to the police’s attention, suspected that “hundreds” of investors may have been tricked out of a total of $8 million. Binance officials have said they had never heard of the coin in question.
The police have been unable to contact the Epay Coin operators, despite reporters attempting to do so by telephoning the phone number printed on one of their business cards, or by visiting the alleged Epay Coin “offices”. South Korean authorities are now attempting to trace the masterminds of the alleged scam, and have urged any other possible victims to come forward.
This case has caused alarm among crypto investors in South Korea, and the government has taken steps to better regulate the cryptocurrency industry. The South Korean government plans to introduce a system of “real-name” accounts and a ban on anonymous trading in the coming months. These measures are intended to help protect investors from falling prey to scams such as this one.