Police Nab Three, Seek Interpol Red Notice Over $8.5 Million Crypto Scam
A group of scammers has been arrested and one more is being sought on an Interpol Red Notice for their alleged role in defrauding investors out of $8.55 million in a cryptocurrency scam.
The suspects set up a fake website called 'Fxrpntwork.com' that promised guaranteed principal returns along with fixed monthly returns of 1.5 to 1.8 percent, according to the Seoul Metropolitan Police Agency.
Investors were instructed to transfer their tokens from domestic exchanges to designated wallets via an overseas exchange, and once they did, the suspects shut down the site and went into hiding.
The police agency launched an investigation in October of last year following intelligence on rising crypto fraud cases. They managed to limit investor losses by tracing the transaction paths and freezing the suspects' crypto wallet within three days of receiving the initial tip-off.