South Korean police officers have arrested 28 people they suspected of orchestrating a crypto investment fraud ring.

Per Jose Geumyoong Shinmun and the broadcaster KBC, a raid was conducted by the Gwangju Metropolitan Police Agency’s Cyber Crime Investigation Unit.

South Korean Police Arrest ‘Bogus Exchange Ringleaders’

Police spokespeople confirmed they had detained six of the group in custody, with a further 22 charged without detention.

Officers think the group duped “about 50 victims” out of a combined total of around $1.3 million.

Investigators said the ring was active from July to December last year. Police spokespeople added that the gang’s members told victims that they could make money by investing in little-known cryptoassets.

The ring reportedly told victims that these coins were about to be listed on major crypto exchanges.

After these listings, the gang allegedly told victims, investors could expect the prices of these coins to skyrocket.

The Gwangju Metropolitan Police Agency’s Cyber Crime Investigation Unit. (Source: KBC/SBS/Screenshot)

However, police said that these coins were all “worthless,” and that none of the tokens had been listed on any exchange of note.

Fake Crypto Experts Tricked Victims, Police Say

Officers also explained that the ring members posed as cryptoasset “experts” and tried to “lure” victims onto what appears to be a bogus trading platform.

Police said the platform was not registered with the Financial Intelligence Unit, the regualtor that governs the South Korean crypto exchange sector.

The ring then proceeded to “steal investment stakes,” police said. Officers explained that the ring told victims that their funds were safe, and they could expect “high profits” soon.

Investigators said the operation was complex, and that the ring had divided into a “sales team unit” and a “public relations team.”

The Gwangju Metropolitan Police Agency headquarters. (Source: KBC/SBS/Screenshot)

The suspects were charged with several offenses, including organized crime. Police said they were “investigating additional crimes” related to the ring.

South Korean police crackdowns have unearthed scores of bogus crypto exchanges in recent months.

Courts, meanwhile, have handed convicted offenders heavy sentences. Earlier this month, a judge sent a fake XRP exchange operator to prison for eight years.

And in January, the Supreme Court sent the CEO of V Global, a fake crypto exchange that defrauded thousands of victims, to jail for 25 years.

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