South Korean police have arrested two individuals accused of using counterfeit banknotes to complete a cryptocurrency transaction in an over-the-counter (OTC) crypto deal. The arrests took place in Seoul’s affluent Gangnam District, an area known for its high-profile cryptocurrency activity.
Counterfeit Cash for Crypto: The Incident
According to reports from KBS, officers from the Gangnam Police Station apprehended the suspects after they allegedly used 210 million won ($159,300) in fake banknotes to pay for cryptocurrency. The incident occurred at approximately 3:00 am on September 15 at a restaurant in the district.
A victim, who remains unnamed, transferred 300 million won ($227,500) worth of cryptocurrency to the duo’s wallets. Although the specific cryptocurrency involved has not been disclosed, the suspects handed over 4,200 counterfeit 50,000-won bills in exchange. The victim later realized that many of the bills carried the same serial number, prompting suspicion.
The crypto trader reported the case to authorities, who quickly arrested the duo in the Yeoksam neighborhood around noon on the same day. Police are investigating whether the suspects created the counterfeit notes themselves or if additional individuals were involved. One of the arrestees is reportedly in their 20s.
Rise in OTC Crypto Crimes in Gangnam
Gangnam, the epicenter of South Korea’s cryptocurrency industry, has seen a surge in OTC crypto-related crimes this year. The district is home to many of the country’s largest crypto exchanges and blockchain companies, as well as numerous high-profile traders.
The police continue to crack down on illegal activities in the area as OTC crypto deals, which often occur outside the scope of regulated exchanges, become more prevalent. Yoo Sung-hyun, a manager at a Gangnam-based IT firm, noted that there has been a noticeable increase in discussions about cryptocurrency in the area, something that had not been as common in recent years.
Authorities remain vigilant, working to address the growing challenges posed by OTC crypto trades and prevent further incidents of fraud and counterfeiting.
