A group involved in an investment scam using a worthless coin under the guise of an “event win” has been arrested.
The Anti-corruption and Economic Crimes Investigation Unit of the Gyeonggi Nambu Police Agency announced on the 28th that they had arrested and charged three individuals, including a 50-year-old identified as A, on fraud charges.
A and his associates are accused of defrauding 5.7 billion won from 129 individuals by persuading them that they could earn substantial profits by investing in the GCV (Golf Cart Victoria) coin they had created, from December 2023 to June of the previous year.
The GCV coin is a meme coin with no economic value, created under the pretense of a golf equipment trading business by A, the mastermind. Meme coins are digital currencies inspired by online memes and created for entertainment purposes, lacking real economic value.
A reportedly requested B, a coin developer, to create the GCV coin, which was developed in just two hours and successfully listed on a small Vietnamese cryptocurrency exchange last January. The listing price was a mere $0.001, roughly equivalent to 1.4 Korean won.
A and his group set up an office in Yongsan, Seoul, and purchased data containing the personal information of an unspecified number of individuals. They then employed around 20 telemarketers to send random text messages claiming recipients had “won an airdrop event.”
Upon contacting the victims, they were instructed to install a fake coin wallet (application) where GCV coins were distributed for free. They were deceived into believing that the CGV coin would soon be listed on major domestic exchanges and that investing in it could yield high returns.
Additionally, it was disclosed that they falsely promised a golf course membership in the Philippines for purchasing CGV coins worth 20 million won and a membership in Japan for purchases worth 50 million won.
The victims reported the fraud in July of the previous year, and the National Police Agency designated Gyeonggi Nambu Police Agency as the lead investigative body, considering the scale of the crime.
After over a year of investigation, the police apprehended all three suspects, including A.
A police official stated, “We will do our utmost to trace the criminal proceeds to ensure victim compensation and recovery of criminal profits,” adding, “We plan to continue actively responding to cases involving multi-victim scams, such as investment leading, through focused investigations.”