The police in South Korea uncovered a criminal group that disguised gambling as a cryptocurrency project. According to law enforcement, over 140 million Korean won (approximately $96,000) passed through this scheme. The local police have launched an investigation and seized equipment related to the illegal activities.
This is reported by Business • Media
The suspect, whose name has not been disclosed, set up about 50 modified gaming machines and two kiosks in an office in Gwangju, which were allegedly operating for cryptocurrency mining. In reality, it was a fully operational underground casino, as noted by journalists. He charged each player 50,000 Korean won (around $35) per hour, providing cash winnings based on the points accumulated.
“We will actively combat illegal gambling establishments, even after they are shut down,” emphasized Police Chief Jeong Gyeon Ho.
According to reports, after the raids, law enforcement confiscated all equipment and announced the start of a more detailed investigation to identify possible accomplices of the criminal.
Risks of Cryptocurrency Schemes
South Korea is witnessing a rise in fraudulent schemes operating under the guise of cryptocurrency projects, attempting to evade regulatory oversight. Malefactors are using various digital tools—from mining to fake investment platforms.
In November 2024, law enforcement arrested 215 individuals who deceived crypto investors while working for a fake investment company. Additionally, in December 2024, a Chonju city hall official was sentenced to five years for embezzling public property and committing fraud with crypto investments, and in March 2025, another public official caused losses of $342,000 through fraud and crypto investments.