Bitcoin Exchanged for More than $2 Million Worth of Counterfeit Notes in Scam

It seems as if August is the month of cryptocurrency scams in South Korea. First, we reported on an alleged scam involving buried treasure. Now, according to The Journal, it seems as if the latest dodgy deal has all of the makings of a movie.

Picture the coastal beauty of the French Riviera and the luxurious hotel at the center of the deal. The scene changes to the interior of the hotel room and shows a meeting between two men, a South Korean businessman and his Serbian associate. The latter hands over two million euros as payment for the equivalent amount of bitcoins received from the former.

It seems like a straight-forward deal, one leaving both parties satisfied. However, there was definitely no happily ever after in sight as the fiat money received was actually counterfeit, and not very convincing counterfeit either. According to the South Korean businessman, the notes contained in the suitcase were simply, and poorly, photocopied.

To Catch a Fraudster

The story began when the South Korean man, who has a Bitcoin-based business, was contacted by a Serbian buyer and his associate. Under the guise of investing in the man’s business, the fraudsters requested to meet and provide a cash investment in exchange for bitcoins. The deal was scheduled to be completed at a hotel in Nice. However, after he was made aware of the scam, the victim reported the fraudster who was arrested by the police.

The scam artist wasted no time in spending his ill-gotten gains. Authorities found him living it up at a fancy hotel wearing a watch worth over $100,000 and owning a costly car. No word on whether it was a Lambo or not.

While his accomplice is still on the run, the swindler has been charged with fraud and with being involved in an organized crime syndicate. It is unclear if the victim has recovered any of his losses.

Scam Protection Is Key

It’s no secret that cryptocurrency trading in South Korea is a busy business. Previous reports even state that more than 20% of 20-somethings have invested in the industry. However, with so much action and so little regulation, the onus is on holders and traders to ensure that they do not fall victim to these types of scams.

If something seems too good to be true, it probably is. Find out all that you can about who you’re investing with before you complete any transactions.

Do you think that the victim will get any of his bitcoins back? Let us know in the comments below!

Images courtesy of ShutterStock