- Police arrested 25 members of a major fraud ring targeting over 870 South Koreans.
- The group used romance scams, cryptocurrency fraud, and fake lottery schemes to steal $15 million.
- Thai authorities detained the ringleader and key associates, pending extradition to South Korea.
- Experts say the criminals used complex money-laundering tactics, including chain-hopping and unlicensed brokers.
- The ring exploited fake platforms, nested crypto exchanges, and anonymous cash-out methods to move stolen funds.
On Monday, the Seoul Metropolitan Police Economic Crime Investigation Division announced the arrest of 25 members of the Lungo Company fraud group. The international ring allegedly stole $15 million from more than 870 South Korean victims. Thai police apprehended the ringleader and eight core members. They are being held as they wait for extradition to South Korea, according to a Thailand/2405216?detailWord=”>local media report.
Authorities say the group relied on multiple scam tactics, including romance scams, cryptocurrency fraud, and fake compensation offers for lottery winnings to convince people to send funds. Lungo Company manipulated victims into making deposits on fake platforms or purchasing worthless crypto coins, often presented as part of fake compensation for supposed data breaches.
A police official said, “Unlike previous crime rings that usually relied on a single method, this group used multiple tactics in a systematic way.” Cybercrime advisor David Sehyeon Baek explained that the group operated through unlicensed over-the-counter (OTC) brokers in Thailand, especially in major tourist spots. These brokers allowed quick crypto-to-cash conversions while avoiding regular banking oversight.
The suspects likely used “chain-hopping”—rapidly moving funds across different blockchain networks—to hide the money flow, Baek said. He added that cross-chain crime, involving the use of decentralized exchanges and anonymous swap services, has tripled worldwide in the last two years. This makes it harder for investigators to track stolen assets.
Baek also pointed out that the group exploited so-called “nested” or “parasite” services. These are unauthorized trading platforms nested within large regulated crypto exchanges, allowing clients to trade anonymously at higher fees, usually between 7% and 15%. Techniques like crypto-funded prepaid cards for ATM withdrawals, laundering through casinos, and splitting transfers into thousands of small sums helped the criminals avoid detection.
For final cash-outs, the network reportedly used unregulated brokers in Thailand and nearby countries and arranged deals through encrypted apps such as Telegram and WeChat.
This case follows a similar police operation last month in Seoul, where authorities dismantled an international Hacking group that stole $28.1 million from top South Korean clients—including public figures—by breaching both traditional and cryptocurrency accounts.
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