The South Korean police have arrested a criminal gang suspected of cryptocurrency investment fraud, with the amount involved reaching 82.29 million dollars

ChainCatcher news, according to Newspim, the Intelligent Crime Investigation Team of the Changwon Western Police Station in Gyeongnam, South Korea, stated that 22 people, including the general manager of an investment company, A, were arrested on suspicion of forgery of receipts and fraud, with 11 of them detained.

The gang is suspected of soliciting investments in virtual assets through a multi-layered organization, falsely claiming to guarantee a high return of 300%, collecting 110 billion won (approximately 82.99 million USD) from 6,610 victims. Investment manager A promoted the company as "a financial technology comprehensive asset management company based on the real economy, with main business activities including the listing of 'coins' in the domestic market and entering the Korean won exchange market."

Investigations revealed that the main business activities advertised by the company were all false, and the criminal method was a typical Ponzi scheme, known as the "revolving door" model, where the investments of junior investors were used to subsidize those of senior investors.