Police bust China-based investment fraud ring that swindled 292 victims of W14.2b

Police have arrested members of an investment fraud ring operating out of China that swindled 292 victims out of 14.2 billion won ($10.6 million).

Seoul's Gangseo Police Station announced Thursday that it had arrested 13 members of the criminal organization on fraud charges and detained five of them.

According to police, the suspects used burner bank accounts held in the names of shell companies to lure victims through messaging apps with promises of high returns, then stole their money. The scheme ran from December 2025 through March 2026.

The operation was highly organized. Account openers received 5 million to 7 million won per account to set up shell companies, open bank accounts and hand them over to the ring. Account managers then handled those accounts and dispersed the stolen funds through multiple transfers. Money launderers converted the proceeds into virtual assets.

Police launched the investigation in March after receiving a report from one of the victims, analyzing financial transaction records tied to the accounts used in the scheme. Investigators subsequently identified those responsible for opening accounts, managing them and laundering the proceeds.

Police then pursued suspects who had fled abroad by issuing Interpol red notices and imposing administrative sanctions on their passports, eventually arresting all 13 members in succession.

About 126 million won in identified criminal proceeds has been frozen pending indictment.

Police said they plan to work through international channels to apprehend remaining members still abroad, and will continue tracing unrecovered criminal proceeds with the aim of seizing them.

"If the name on an investment firm differs from the name on the deposit account, or if you are repeatedly asked to invest more money with promises of high returns, you should suspect fraud and report it to police immediately," a police official said.