Seoul police have arrested a criminal organization that stole approximately 800 million won ($570,000) in cryptocurrency through a new type of phishing scheme.
According to police on Wednesday, the Gangbuk Police Station apprehended seven members of the criminal ring on charges including violations of the Information and Communications Network Act and the Act on the Aggravated Punishment of Specific Economic Crimes. The suspects allegedly hacked a victim's cryptocurrency wallet in April last year and stole USDT (Tether) worth 800 million won. Six suspects, including the ringleader identified only as "A," a man in his 40s, have been detained.
The group made random calls to potential victims, directing them to phishing websites with promises of high interest rates if they deposited cryptocurrency. The sites were designed to capture wallet withdrawal permissions when victims connected their wallets, without the victims' knowledge.
To build trust, the criminals sent daily interest payments for one month as promised. When the victim deposited 800 million won worth of Tether believing the scheme was legitimate, the group seized the entire amount. They then laundered the stolen assets through multiple domestic and foreign currency exchanges to evade investigators.
Police successfully dismantled the organization through a nine-month investigation, arresting suspects sequentially. One gang member who participated in the crime from Vietnam was apprehended through close cooperation with police officers stationed there.
Investigators also arrested a developer in his 30s, identified as "B," who sold essential tools including the phishing website, server, and smart contracts to the criminal organization. Smart contracts are automated contract systems based on blockchain technology that execute when coded conditions are met—in this case enabling the suspects to seize control of victims' wallet withdrawal permissions.
Police secured key evidence including accomplice testimony and sent B to prosecutors under detention.
"Cryptocurrency-related crimes have been increasing recently, requiring special caution," a police official said. "If you connect your wallet to a fraudulent site, you can lose all your cryptocurrency instantly. Anyone promising high interest rates or directing you to unverified online sites should be treated with suspicion as a potential scam."