Unlisted cryptocurrency pyramid schemes continue to proliferate across South Korea despite a downturn in the crypto market, with victims near Seoul's Seolleung Station losing tens of millions of won. One victim, identified as A, told Yonhap News on the 16th that he lost 60 million won after being recruited by overseas brokers who promised high returns on unlisted coins not listed on CoinMarketCap. The schemes exploit investor FOMO (fear of missing out) by claiming coins will increase 10 to 100 times in value upon listing, according to blockchain compliance experts. Victims often become recruiters themselves, blurring the line between perpetrator and victim in a cycle that makes reporting and fund recovery difficult. Seolleung Station has become known as a hub for such multi-level marketing scams.
Victims Become Recruiters in Seolleung Station Pyramid Scheme
A, who met with Yonhap News near Seolleung Station, stated: "I also suffered 60 million won in damages." He had been recruiting investors by claiming they could earn large sums by investing in unlisted coins. A explained that overseas brokers introduce unlisted coin businesses to South Korea and receive commissions, adding: "All members become victims."
Another victim, B from Busan, told Yonhap News that broker C persuaded him years ago to invest tens of millions of won in multiple coins with promises that listing would multiply values hundreds of times. B stated: "I invested a large amount, and a lot of acquaintances' money went in too, but it seems like an accident happened." He added: "I've waited 6 months, a year, and now I think I won't get the money back."
The coins promoted by both A and the one A invested in were not searchable on CoinMarketCap, indicating unclear legitimacy. B entered the coin-related business after C's persuasion about earning money through new ventures, becoming both victim and recruiter.
Delayed Reporting Enables Repeat Offenses
Most unlisted coin investors hesitate to report to police due to promises like "we'll return your money soon" or "wait a little longer and you'll receive principal and profits," according to the source. This delayed reporting allows crimes to repeat without significant sanctions, and victims transform into recruitment agents, producing more victims and forming a cycle of pyramid scams using unlisted coins.
A Bonanzafactory (blockchain compliance firm) official stated: "These scams are often designed from the start with methods to evade investigation and law enforcement." The official emphasized: "If victim reports are delayed, critical initial time for fund tracking and freezing is lost. We need to strengthen systems that enable victims to report as quickly as possible and begin tracking and freezing procedures for crime-related accounts and wallets."
Experts Urge Immediate Reporting and Avoidance of Unlisted Coins
Experts unanimously recommend avoiding unlisted coin investments as the primary prevention method. Yoon Seung-sik, Research Center Director at Tiger Research, stated: "Coins are still an easy topic to talk about as increasing 10 or 100 times upon listing. Scammers exploit this to stimulate investors' FOMO."
Yoon continued: "Opportunities don't come to individuals who aren't investors moving large investment funds. Especially, major domestic and foreign exchanges do not promise or guarantee listings in advance. If they promote confirmed listing on major exchanges, it's 99.9% a scam."
FAQ
What happened to victims near Seolleung Station?
Victims near Seoul's Seolleung Station lost tens of millions of won in unlisted cryptocurrency pyramid schemes. One victim, A, told Yonhap News on the 16th that he lost 60 million won after being recruited by overseas brokers promising high returns on coins not listed on CoinMarketCap.
Why do victims hesitate to report these scams?
Most unlisted coin investors hesitate to report to police due to promises like "we'll return your money soon" or "wait a little longer and you'll receive principal and profits." Victim B stated he waited 6 months to a year before concluding he would not recover his funds, during which time he did not file a police report.
