South Korean Probe Uncovers Counterfeit Won Scheme Targeting Crypto Traders

• Suspects contacted crypto holders online to arrange in-person exchanges, passing off low-quality fakes as real cash.

• The scheme was exposed when a victim in Asan City spotted the poor print quality and alerted authorities.

• Similar incidents in Hong Kong involved counterfeit notes in crypto deals, with over 11,000 fakes seized in one 2024 raid, exceeding the prior year’s total.

Discover how counterfeit Korean won scams target crypto traders in South Korea. Learn prevention tips for safe face-to-face deals and stay protected from fraud. Read now for expert insights on rising crypto risks.

What Is the Counterfeit Korean Won Crypto Scam in South Korea?

The counterfeit Korean won crypto scam involves criminals producing fake 50,000-won bills to deceive cryptocurrency holders during in-person transactions. In this case, a group in South Chungcheong province manufactured thousands of imitation notes using basic printing equipment and arranged meetings with traders online. The fraud was uncovered last year when police seized 9,188 counterfeit bills valued at approximately 459.4 million won, or about $330,000, preventing wider distribution.

How Do Counterfeit Currency Scams Affect Crypto Traders?

Counterfeit currency scams exploit the trust and speed of over-the-counter crypto markets, where buyers and sellers often meet in person to swap digital assets for cash without intermediaries. In the South Korean incident, suspects printed low-quality fakes on a color printer, which were easy to produce but detectable upon close inspection. According to reports from Chosun Ilbo, the group targeted unemployed individuals seeking quick liquidity from their crypto holdings, contacting them via online platforms to set up exchanges in public areas like Asan City.

The victim who thwarted the scam noticed irregularities in the notes’ texture and printing during the arranged meeting, refusing to proceed and instead notifying police. This vigilance underscores the importance of verifying bills in well-lit conditions, as recommended by the Bank of Korea. Authorities arrested two suspects immediately in October and November last year, while the third fled to Cambodia but was later apprehended at Incheon Airport following an Interpol red notice.

Investigators revealed that the perpetrators, three men in their 30s and 40s, claimed financial desperation due to unemployment as their motive. Two have been indicted, with the third still under investigation pending further evidence. The Bank of Korea honored the investigating officers with an award for their role in curbing counterfeit proliferation, noting the seizure’s scale as a major contribution to financial security.

Beyond South Korea, these scams parallel global trends. In Hong Kong, a July 2024 case saw three individuals arrested for using over 11,000 fake banknotes to steal $400,000 in USDT from a businessman in the bustling Mong Kok district. That haul surpassed Hong Kong’s entire counterfeit seizures from the previous year, according to local police reports. Earlier that year, in May, authorities nabbed three crypto exchange employees for a similar ruse involving “hell money”—ritualistic fake notes readily available in shops—defrauding a customer of HK$128,000 in a USDT transaction.

Experts emphasize that such frauds thrive on the informality of peer-to-peer crypto trades, where large sums exchange hands rapidly with minimal scrutiny. The Bank of Korea advises using its updated mobile app for instant bill verification, which scans for security features like holograms and watermarks. Public awareness campaigns stress immediate reporting of suspicious notes to prevent circulation.

This incident also ties into escalating physical threats in the crypto space. Over the past year, “wrench attacks”—violent robberies targeting wallet access—have surged. Jameson Lopp, chief technology officer at crypto security firm Casa, has tracked at least 66 such assaults worldwide in 2025, including kidnappings and invasions affecting investors and their families. These events highlight the need for enhanced personal security protocols in high-value crypto dealings.

Frequently Asked Questions

What Are the Signs of Fake 50,000-Won Bills Used in Crypto Scams?

Look for poor print quality, such as blurry images or uneven ink on fake 50,000-won bills. Genuine notes feature a moving hologram, precise watermarks, and microprinting that counterfeit versions often lack. In the South Korean case, victims spotted these flaws during in-person crypto trades, leading to police intervention and the recovery of thousands of fakes.

How Can Crypto Traders Avoid Counterfeit Money in Face-to-Face Deals?

To stay safe, always verify cash in bright light, checking for security threads and tilting bills to see hologram shifts. Use apps from central banks like the Bank of Korea for quick scans during meetings. Opt for verified platforms or escrow services for crypto exchanges, and meet in secure, public locations to minimize risks from scams like the recent Korean won fraud.

Key Takeaways

• Counterfeit risks in crypto trades are rising: Schemes using fake Korean won or Hong Kong notes exploit informal P2P deals, with seizures showing thousands of bills involved in recent busts.
• Vigilance prevents fraud: Inspecting bills closely, as one Asan City victim did, can stop scams early and lead to arrests, supported by tools like detection apps.
• Broaden security measures: Combine cash checks with protections against physical attacks, as tracked by experts like Jameson Lopp, to safeguard crypto assets comprehensively.

Conclusion

The counterfeit Korean won crypto scam in South Korea exemplifies the evolving dangers in face-to-face cryptocurrency transactions, where fake 50,000-won bills nearly defrauded traders of significant holdings. With parallels in Hong Kong and insights from authorities like the Bank of Korea, these cases stress the value of thorough verification and awareness. As crypto adoption grows, staying informed on such counterfeit currency scams and adopting robust security practices will be essential for traders to navigate risks confidently and securely.