Thai Police Dismantle $15M Crypto Scam Ring Targeting Koreans

Thai police and South Korean authorities recently dismantled a $15M crypto scam ring that defrauded hundreds of Koreans.

Thai police, working with South Korean investigators, have dismantled a crypto scam ring worth $15 million. 

The group, which is known as Lungo Company, targeted more than 870 South Koreans through a mix of online scams and fraudulent investments.

Authorities arrested 25 suspects, with 21 already in custody in South Korea. Thai officials detained the ringleader and eight other members in Pattaya. 

As of writing, they are awaiting extradition to face charges in Seoul.

How the Crypto Scam Ring Operated

Police say that the group ran multiple scams. Victims were lured into fake crypto investments, romance scams and lottery compensation programs.

Unlike traditional fraud rings that often rely on one trick, Lungo Company layered different scams. This approach made the operation harder to trace.

Victims deposited money on fake trading platforms or bought worthless tokens under false promises. Others were tricked through romance scams where scammers built trust before convincing victims to transfer funds.

Another tactic, known as the “no-show scam,” involved fake bulk orders. Criminals posed as celebrities, hospitals or corporations. They then pressured small businesses into paying suppliers upfront for goods that never existed.

The Arrest of “Jaryong” and His Core Team

The ringleader, known by the alias “Jaryong,” ran the group from Pattaya. His name was symbolic, as “ryong” translates to “dragon” in Korean. Police believe that he coordinated the group using encrypted apps like Telegram and WeChat.

Three police missions to Thailand were needed to collect evidence and identify senior operatives. Raids on two Pattaya offices helped confirm the group’s structure and methods.

Thai police arrested 20 suspects during a June raid on a resort, while follow-up raids netted the ringleader and his top team.

Money Laundering Through Multiple Channels

Investigators revealed that the crypto scam ring used several laundering systems. Stolen money flowed through prepaid cards, casino cash-outs and fragmented transactions.

High-volume over-the-counter brokers in Southeast Asia were also important to this scam. They converted crypto into cash, which was later moved through informal networks.

This approach kept the group hidden for years. A police spokesperson called it “a systematic fraud operation built on layers of deception.”

Community and Police Reactions

South Korean police stressed the seriousness of the case. They noted that Lungo Company’s crimes stretched far beyond typical voice phishing.

“We will continue to track these fraud crimes, at home and abroad, without compromise,” the Seoul Metropolitan Police said in a statement. 

They also urged Koreans to be wary of online scams that appear legitimate.

The bust has also created debate in South Korea about the rising trend of organised fraud. Observers point out that scams now combine crypto, romance and business fraud into operations that target some of the most vulnerable groups.

A More Serious Pattern of Fraud Cases

The Lungo case is not isolated. South Korea recently uncovered another ring that stole $28.1 million from high-net-worth individuals. That group also relied on crypto-based tactics and online fraud.

Meanwhile, a separate investigation revealed the largest known crypto theft in history. Hackers stole more than 127,000 BTC from the LuBian mining pool in 2020. At today’s prices, that stash is valued at nearly $14.5 billion. 

The stolen funds have not moved since last year, and are leaving investigators puzzled about the thief’s identity.

These events show how fraudsters are combining crypto with traditional methods. Authorities warn that victims often struggle to recover funds due to the anonymous nature of blockchain transactions.