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South Korea’s Financial Supervisory Authority issues tips to prevent the spread of cryptocurrency scams

South Korea’s Financial Supervisory Authority issues tips to prevent the spread of cryptocurrency scams

CointimeCointime2024/01/21 05:22
By:Cointime

The Financial Supervisory Service of South Korea has issued a warning to prevent the spread of damage based on reports of virtual asset-related investment fraud from the Virtual Asset-related Investment Fraud Reporting Center. The financial regulatory agency is calling for caution against investment solicitations through unauthorized and unregistered (illegal) virtual asset exchanges and providing response tips.

The report states that investment fraudsters associated with cryptocurrency approach investors through social media, encouraging them to join illegal exchanges not authorized by the Financial Intelligence Unit (FIU) under the Financial Services Commission, and promising to help them invest.

Afterwards, they introduce the point system and other benefits that can be obtained after joining the exchange. After establishing trust by providing promised points and allowing small withdrawals, they attempt to attract investment funds by claiming to provide investment advice from investment experts and offering ICO opportunities for unlisted coins.

Once funds are transferred, they instruct investors to buy and sell, appearing to have made a profit, but it is likely that they are manipulating the exchange to deceive investors. Afterwards, when investors request withdrawals to recover their principal and profits, they request additional margin based on tax, margin, and security issues, thereby delaying the withdrawal time.

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