Counterfeit Currency Investigation in South Korea
Authorities in South Chungcheong province, South Korea, are delving into a network accused of creating and distributing counterfeit 50,000-won notes to defraud cryptocurrency traders. The criminal organization was reportedly discovered with a stash of 9,188 forged banknotes, which have an approximate value of 459.4 million won (around $330,000), dating back to last year.
According to reports from Chosun Ilbo, the group employed a color printer to produce these fake bills and subsequently reached out to cryptocurrency traders online, scheduling in-person exchanges of cash for digital currencies.
Discovery and Investigation
The illicit operation came to light when an individual scheduled to meet the fraudsters in Asan City noticed the inferior quality of the money presented and declined to proceed with the transaction. Instead, this vigilant potential victim contacted law enforcement, sparking an investigation.
This incident underscores a growing concern regarding counterfeit currency in crypto dealings, which is often characterized by its swift and informal nature, leaving ample room for fraud.
Notably, similar scams gained traction in Hong Kong over the previous summer, with numerous instances exposing the vulnerabilities within over-the-counter crypto markets.
Related Incidents in Hong Kong
In a striking example from July 2024, law enforcement in Hong Kong apprehended three individuals connected to a scheme that defrauded a businessman of $400,000 in USDT within the bustling Mong Kok district. During this raid, officers discovered over 11,000 counterfeit notes, surpassing the total counterfeit currency seized in the entire previous year.
Additionally, two months earlier, police in the same area detained three employees of a cryptocurrency exchange for allegedly cheating a customer out of HK$128,000 ($16,000) using fake ‘hell money,’ which is typically utilized in traditional practices but was repurposed for deceit.
Arrests and Legal Proceedings
Turning back to the South Korea case, law enforcement officials arrested three suspects, referred to as Mr. A, Mr. B, and Mr. C, all aged in their 30s and 40s. Arrests for Mr. A and Mr. C occurred in late 2022, while Mr. B managed to escape to Cambodia. An Interpol red notice was issued for him, leading to his capture upon re-entering South Korea on November 5, 2023, from China.
Investigators revealed that the suspects claimed their involvement in this criminal activity was motivated by the need to cover living expenses during periods of unemployment.
Currently, Mr. A and Mr. B face indictments, while Mr. C is still undergoing investigation following a denied bench warrant. Police plan to revisit this warrant request after concluding supplementary investigations.
Public Advisory and Rising Crime Trends
For their efforts in disrupting the counterfeiting operation, the involved law enforcement officers were honored with an accolade from the Bank of Korea, which emphasized the team’s vital role in tackling counterfeit crimes.
In light of these events, the Bank of Korea has advised the public to thoroughly examine cash in well-lit conditions and verify the movement of holograms when handling banknotes, while urging immediate reporting of suspected counterfeit currency. Additionally, the central bank is promoting its newly enhanced app designed to help users detect fake money.
This investigation is part of a larger trend, highlighting a rise in crimes associated with face-to-face transactions. Over the last year, security experts have raised alarms regarding ‘wrench attacks’—physical assaults intended to force victims to access their cryptocurrency wallets or transfer funds.
Notably, Jameson Lopp, the CTO of crypto security firm Casa, has recorded at least 66 physical assaults related to cryptocurrency in 2025 to date, including severe incidents like kidnappings and home invasions targeting investors and public figures.
