South Korean National Arrested in $61M AI Crypto Scam
A South Korean national ran a massive AI crypto scam that duped over 1,000 investors. He stole more than $61 million through a fake investment platform. Chain Retrieval, a blockchain forensics unit supported by Chainalysis, uncovered the scheme.
The suspect, identified only as “Park,” operated what looked like a high-tech crypto investment service. He claimed it used artificial intelligence to predict market trends and generate high returns. The platform promised monthly gains of 10–15% with minimal risk — an offer too good to be true.
How the AI Crypto Scam Was Exposed
Chain Retrieval’s report showed that the platform was only a front. Park advertised real-time trading, AI-powered algorithms, and blockchain-backed transparency. In reality, he had no trading system or AI technology. He ran a Ponzi scheme, paying earlier investors with funds from new ones.
Park built the platform with a small team. He spent heavily on digital ads, influencer promotions, and fake success stories to attract more victims. Investors saw professional dashboards and charts displaying consistent profits, even when markets dropped.
Chain Retrieval analysts tracked wallet activity linked to the scam. They found that Park moved most of the funds to private wallets and offshore exchanges. None of the transfers connected to actual trading bots or automated systems.
Authorities said Park misused AI buzzwords such as “machine learning,” “quantum algorithms,” and “predictive trading” to appear credible. With slick branding, he grew the scheme quickly across South Korea and even drew international victims.
Authorities Respond to Growing AI Crypto Threat
The Korean National Police Agency’s cybercrime unit arrested Park in Seoul earlier this week. They seized computers, hard drives, and access to digital wallets tied to the stolen money.
Regulators warn that AI crypto scams are rising fast. Scammers exploit the hype around AI to hide fraudulent platforms and trick investors.
A Chain Retrieval spokesperson said they are tracking similar schemes worldwide. They reminded the public that no legitimate investment guarantees fixed profits, especially in crypto.
South Korea’s Financial Services Commission (FSC) now calls for tighter oversight of AI-based crypto products. Officials want companies offering AI or automated crypto services to face vetting and transparency requirements.
Many victims still hope to recover their funds. Investigators believe Park moved millions to international exchanges, making recovery difficult.
Chain Retrieval ended its report with a clear warning: be skeptical of platforms promising guaranteed returns while hiding behind complex tech jargon. Whether it’s AI or blockchain, fraud is still fraud — no matter how futuristic it sounds.