South Korean Duo Arrested for ‘Using Counterfeit Money to Pay in OTC Crypto Deal’

OTC South Korea

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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Last updated:

September 16, 2024 19:30 EDT

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South Korean police say they have arrested two people they think used counterfeit banknotes to pay for tokens in an OTC crypto deal.

According to the broadcaster KBS, the Gangnam Police Station, in the capital Seoul, arrested at least two people.

Officers said that the duo used “210 million won [$159,300] worth of counterfeit banknotes” as payment for “cryptocurrency transactions.”

OTC Crypto Deals Danger?

South Korea has witnessed a fast rise in OTC (over-the-counter) crypto-related crimes this year. Many of these crimes have been carried out in the affluent Gangnam District.

Officers said they were holding the two individuals on fraud and currency counterfeiting-related charges.

Police said an unnamed “victim” transferred “approximately 300 million won [$227,500]” in “cryptocurrency” to the duo’s wallets.

Officers did not say which coin the alleged victim sent. They said the incident took place at a restaurant in Gangnam District at around 3:00 am on September 15.

A police spokesperson said the duo gave the victim 4,200 50,000 won bills.

However, the alleged victim later inspected the banknotes and realized that many of them appeared to have the serial number.

The crypto trader reported this to the police. Officers arrested the duo on a street in the Yeoksam neighborhood “around noon” on the same day.

Officers said they are investigating to establish if the arrestees made the notes themselves. They are also looking into “other people” they think may be involved.

At least one of the suspects is aged in their 20s, officers told members of the press on September 16.

Gangnam Crackdown?

The Gangnam District is the home of the South Korean crypto industry. Most of the nation’s biggest crypto exchanges and blockchain firms are based in the district.

Many of the country’s most prolific crypto traders are also based in the area. And this has reportedly given rise to uncontrolled OTC crypto trades.

Yoo Sung-hyun, a manager at a Gangnam-based IT firm, told Cryptonews.com:

“More people are talking about crypto and Bitcoin (BTC) in this area recently. That hasn’t really been the case for a few years.”