South Korea Uncovers $28M Crypto Scam After BTS Star Nearly Targeted
South Korea dismantles $28M crypto scam after BTS star Jungkook was nearly targeted, exposing major security gaps.
South Korean police have dismantled one of the country’s largest cyber fraud operations, an international hacking ring that stole nearly $28 million from prominent figures, including global K-pop star Jungkook. The case highlights the growing vulnerabilities in South Korea’s digital finance system, even as the country cements its position as one of the world’s busiest cryptocurrency markets.
The Seoul Metropolitan Police revealed that hackers exploited weak security in six government and financial platforms, stealing personal data from 258 victims. Targets included executives, lawyers, athletes, crypto investors, and celebrities. Among them was BTS member Jungkook, who narrowly avoided a loss of $6.1 million in HYBE stock when banks flagged suspicious activity and blocked the transaction.
Between July 2023 and April 2024, the group infiltrated databases to obtain identity numbers and financial verification details. Using this data, they carried out SIM-swap attacks, creating 118 mobile accounts under victims’ names to bypass authentication systems. The scheme allowed them to drain funds directly from bank accounts and crypto wallets.
Police estimated that accounts linked to the victims collectively held $40 billion, with some single accounts exceeding $8.8 billion. In total, 16 victims lost $28 million, mostly in crypto, while financial institutions prevented an additional $18 million in attempted thefts. Authorities managed to recover $9.3 million by freezing accounts and halting suspicious withdrawals.
The investigation stretched beyond South Korea, with suspects operating across China and Thailand. Two ringleaders, identified only as Mr. A (35) and Mr. B (40), were arrested in Bangkok after a joint operation with Thai police and Interpol. Mr. A has since been extradited to Seoul, where he faces 11 charges, while Mr. B remains in Thai custody awaiting extradition.
“This case reveals major flaws in South Korea’s non-face-to-face authentication systems,” investigators warned, urging stronger security measures to counter increasingly sophisticated cybercrime.
The high-profile targeting of Jungkook amplified public attention, underscoring how even global celebrities are not immune. “The consequences could have been far worse if these operations had continued unchecked,” Seoul police said.
The scandal comes amid a surge of crypto-related scams in South Korea. In May, Jeju police arrested 25 suspects for fake investment schemes worth $540,000, while an Incheon police officer was charged with embezzling $510,000 in a fraudulent crypto project. Another ongoing trial involves Park “Jonbur Kim,” dubbed the “Coin King,” accused of manipulating Artube coin, leading to losses of $49 million.
Meanwhile, prosecutors are investigating nearly $690 million laundered through unlicensed brokers using Neteller Pay, with authorities seizing $3.2 million in Ethereum from hidden wallets.
Despite the mounting risks, South Korea remains a powerhouse in digital assets. According to Chainalysis, the country recorded $95 billion in crypto inflows in 2024, with more than 10.8 million active traders. Regulators are preparing to approve the nation’s first spot Bitcoin ETFs and a won-pegged stablecoin, signaling strong institutional demand.
The case has reignited debate over whether South Korea’s regulatory framework can keep pace with its rapidly expanding crypto market.
