The Seoul Central District Court has issued a significant ruling, sentencing a man in his thirties to five years in prison who was found guilty of masterminding an elaborate cryptocurrency scam aimed at well-known AfreecaTV streamers and a businessman, according to Asia Kyungjae.
Scammers have targeted AfreecaTV’s top broadcasters, known as BJ stars, exploiting the platform’s ‘star balloon’ donation system.
Using the guise of a crypto investment expert, the scammer gained the trust of victims by generously donating star balloons, each worth around $0.08. These digital currencies, introduced in 2017, serve as a source of income for streamers and can be used in various outlets.
The fraudster’s tactic involved befriending a BJ star and a businessman who had previously experienced losses in crypto and stock market investments. Presenting himself as wealthy and knowledgeable, he promised significant returns and assured that he would cover any losses with his funds.
The court determined that the scammer received over $1.8 million from victims while falsely claiming their investments had surged to nearly $21 million.
Even as the scammer tried to maintain an illusion of wealth, their victims grew suspicious when they couldn’t retrieve the full profits promised. Further inquiries exposed the scammer’s dire financial situation, marked by significant debts and the imminent collapse of their PR company.
This incident comes amidst warnings from national security agencies about the rising incidence of crypto and mining-related scams in South Korea, with a recent study indicating that a majority of the victims are young women.
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