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A prominent South Korean broadcast jockey lost $1.1 million to a swindler who posed as a "crypto expert." Bybit/flickr.com

KEY POINTS

  • The scammer allegedly showed the BJ that he had Bitcoin holdings worth $3.8 million
  • The BJ sent over $1.1 million to the swindler, trusting that his money will grow through Bitcoin investments
  • Only $75,000 was returned to the BJ, as the scammer turned out to be a debt-ridden, failed businessman

A man who claimed to be a cryptocurrency expert and stole approximately $1.1 million from a South Korean broadcast jockey (BJ) has been sentenced to five years in prison following his fraud indictment, a local outlet reported Sunday.

The perpetrator, referred to as Mr. A, 32, first took the "famous" BJ's attention by gifting the BJ with star balloons on a livestreaming platform, local Asia Kyungjae reported, citing the legal community at the Seoul Central District Court Criminal Agreement Division. Cryptonews.com said the victim was a BJ on AfreecaTV, the country's leading livestreaming platform. The BJ reportedly had hundreds of thousands of subscribers.

The BJ reached out to Mr. A using the platform's "whisper" function in 2021 and shared his experiences in failed investments. Mr. A allegedly claimed to be a crypto coin expert and bragged about being the owner of Bitcoin worth 5.1 billion won ($3.8 million).

"If you invest, I guarantee you 2 to 4 times the return, and even if you lose, I will make up for it with my own money," Mr. A allegedly offered to the BJ, as per a Google translation of the report.

The BJ then sent the first 10 million won to Mr. A (approximately $7,500) that same year, then transferred 1.5 billion won ($1.1 million), which was reportedly equivalent to the BJ's "entire assets." The two never met in person and only communicated using online, as per the report.

By January 2022, an anxious BJ received a supposed Bitcoin statement from the scammer that showed the broadcast jockey's balance had hiked to 27.9 billion won ($20.9 million). Mr. A also allegedly told the BJ that he had four residential properties in Gangnam. It was later revealed that Mr. A "ran a public relations company and was on the verge of closing down, with debt exceeding 70 million won (approximately $52,000)."

Mr. A has only returned 100 million won ($75,000) to the BJ and also swindled 500 million won ($375,100) from a businessman whom he victimized in the same way he tricked the BJ, the report added.

The news comes about a week after the Sejong Southern Police Station warned South Koreans of a crypto-related scam proliferating in social media "investment reading rooms," local News1 reported.

Bad actors allegedly posted fake advertisements on the said reading rooms to lure in possible investors. Reading operators then urged people to deposit large amounts of money for investments but they later disappeared or refused to provide the funds as soon as profits were generated.

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