South Korean Police Arrest ‘Gang of Chinese Crypto Thieves’ Who ‘Robbed High-End Hotel Guest’

Police in South Korea have arrested six Chinese citizens suspected of hacking into the personal wallet of a guest at a luxury hotel in Jeju, stealing cryptocurrency and cash with a total value of about $580,000. Police suspect the attackers organized a sham over-the-counter (OTC) crypto trade in order to commit the crime. Arrest of Suspects at Jeju International Airport The Jeju West Police Station confirmed that the arrests were made on January 16. The detentions stemmed from an assault and robbery incident reported by the victim, a Chinese national working unofficially as a “crypto and fiat currency exchanger.” According to police, the suspects targeted the victim during an early-morning transaction and ran off with both cash and cryptocurrency. Some were arrested from another hotel while others from Jeju International Airport, apparently getting ready to flee South Korea. Bogus OTC Trade Scheme Police say the gang had pre-planned and agreed to rob the victim in the disguise of trading normally over-the-counter. The suspects reportedly provided cash several times in previous trades in exchange for cryptocurrency. However, during the final transaction, the suspects claimed they had not received the agreed crypto. According to the police, they physically assaulted the victim, stole the cash that they had just handed over, and seized additional funds directly from the victim’s mobile wallet. Investigating Stolen Crypto Funds The victim reported the incident immediately, which allowed the police to trace the movements of the suspects. Authorities are now tracing the assets of the stolen cryptocurrency, including the ones allegedly taken from the virtual wallet of the victim. According to police officials, the suspects deliberately misled the victim into believing that he was trading crypto for cash, but all along, they intended to stage a robbery when enough money would be involved. Larger Implications The incident points to the risks of unofficial OTC crypto trading, especially when large amounts of money are involved and unregulated exchanges. Police called on the public to be cautious when dealing in cryptocurrency transactions and to ensure security.