Police Crack Down on Voice Phishing Scams with Crypto Exchange Probe

South Korean authorities have recovered $19.5 million for 1,137 victims of voice phishing scams through a probe into cryptocurrency exchanges.

The Seoul Metropolitan Police Agency and exchanges traced 1,050 digital wallets to identify around $26.3 billion in victim funds that had been frozen due to suspected phishing proceeds.

However, the exchange accounts were unable to be returned to victims as there was no legal basis for them to reclaim their money. Under current laws, victims can seek relief only from financial companies such as banks, but cryptocurrency exchanges receive no information about victims from these institutions.

A three-year investigation led by police in September 2023 resulted in the tracing of all 1,050 frozen accounts and the recovery of $26.37 billion for 1,137 victims through a combination of analysis and victim identification.