Fake Bitbuy Crypto Exchange Tricked Investors

The exchange made fraudulent claims that investors could earn compound interest gains of 0.5% every eight hours by trading it.

After stating that investors can use it to make compound interest gains of up to 0.5 percent every eight hours, police in South Korea raided the operators of what they say was a fraudulent cryptocurrency exchange that lured 12,000 people.

The firm imitated a South Korean affiliate of the genuine Canadian exchange Bitbuy and employed models, produced YouTube commercials, and even engaged professional cinematographers to make its deception appear legitimate.

In a 20-minute film with graphics and effects, a so-called crypto expert claiming to be an expert in crypto investment promoted schemes for depositing customers' coins to get big profits.

After gaining attention from the crypto community, a YouTube user uploaded a video that was quickly recognized as a possible fraud. In the comments section of the original video, an individual allegedly claimed to have exposed the apparently fraudulent exchange.

Over a period of 150 days, the presenter claimed that users might make USD 84,000 using the site. She also revealed an expensive supercar that she says she purchased with her cryptocurrency earnings.

In the videos, the presenter, who goes by "Mina" from "Minacoin" in her broadcasts, appears to have posed as an expert crypto trader offering up trading expertise.

In a video shared by the same person, she said she would soon provide more crypto- and especially bitcoin-related information. The woman's channel and the original videos appear to have been removed.

The videos were published in May this year, but users on the two films appeared to have accused the woman of fraud before she was revealed to be an actress - even if she was nothing more than a performer, they alleged, she would surely be charged as an accomplice.

According to the police, 19 individuals had been detained in Seoul over a scam that defrauded customers out of approximately USD 46.3 million; no mention was made if the woman had been charged.

According to the police, the masterminds behind the scheme enticed more well-known IT YouTubers to talk with "Mina." The broadcaster, according to authorities, was actually an aspiring actress who had responded to a part-time employment ad and had no prior trading or investing experience.

The police took action as early as May, when the false market's site was abruptly shut down, according to media reports. But the scammers, cops said, moved even quicker by moving investors' funds to 100 backup wallets. The tokens were then converted to fiat and transferred into personal wallets before being converted back to cryptocurrency and ending a lengthy chase.

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