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South Korean Civil Servant Charged with Crypto Fraud

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A South Korean civil servant was arrested on March 27 on charges of committing crypto-related fraud and carrying out voice phishing attacks.

According to Fn News, the accused is a level six district office official in her 50s. Police said she “received money from multiple victims.”

Police say she converted the fiat to Bitcoin (BTC). She then reportedly sent the coins to a “voice phishing gang member.”

South Korean Civil Servant ‘Worked for Voice Phishing Gang’

Police in Seoul’s Dongdaemun District said they had arrested the woman “on charges of fraud” at a bank in the Jegi Neighborhood.

Officers said that the civil servant “converted over $74,000 worth of her voice phishing fraud funds into Bitcoin.”

She then allegedly sent the coins “to a voice phishing organization member.” This person allegedly paid her “a fee” for her activities.

Seoul’s Dongdaemun District.
Seoul’s Dongdaemun District. (Source: Brit in Seoul [CC BY-SA 4.0])

The woman reportedly stated she was “deceived” into joining the gang by an individual. This person, she claimed, said she could make money “through legitimate means.”

A police spokesperson said officers were still “investigating evidence.” Officers said they were also “identifying potential additional victims.”

Officers said they had searched addresses connected to the civil servant, and were now examining additional data.

Police said they were “conducting an investigation” into whether the public official had used “information she learned at work” to prey on potential victims.

Rise in Crypto Crime?

In recent years, police have noted an uptick in crypto-related crimes, including voice phishing. Attackers often pose as civil servants, tax service workers, or bank employees.

They often tell potential victims that their bank accounts are under attack or that they are being investigated for tax-related offenses.

Attackers often tell victims that they have the power to solve these issues, and invariably request bank or crypto transfers to help “fund” their “solutions.”

In June 2023, the nation was stunned by the case of a government worker who allegedly escaped to the Philippines after stealing around $3.5 million from the National Health Insurance Corporation (NHIC).

The NHIC operates South Korean nursing care funds. The civil servant allegedly embezzled the money from April 2022 to September 2022.

He then reportedly converted the money to crypto. He then allegedly fled to live a “life of luxury” at an expensive resort in the Philippines.

Local police arrested the man in January this year, and he was repatriated to face charges shortly after.

A risky ETF in the US that aims to deliver twice the daily performance of short-term CME Bitcoin futures is seeing strong demand from Korean investors https://t.co/k120xMXrkH

— Bloomberg (@business) March 27, 2024

In 2022, photographers caught a “high-ranking” South Korean civil servant buying Dogecoin (DOGE) on his cell phone in the middle of a key local government meeting.

The post South Korean Civil Servant Charged with Crypto Fraud appeared first on Cryptonews.

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