“Get Crypto Just for Attending Classes”: Fake Virtual Asset Exchange Scams Spreading Rapidly via SNS

A surge in sophisticated scams involving fake cryptocurrency exchanges is prompting warnings from South Korean regulators. The Financial Supervisory Service (FSS) recently issued a consumer alert, urging heightened vigilance among investors.

These scams typically begin with innocuous-looking promotions on social media platforms such as Instagram, Facebook, and YouTube. Phrases like “Free access to hot stocks,” “Crypto rewards just for attending,” and “Complimentary investment seminars” lure users into private group chats via Telegram or KakaoTalk.

Once inside, users are introduced to so-called “Professor Lee” or similar self-proclaimed experts. Over the course of several months, these scammers build trust by offering regular lectures and distributing small sums of money or fake tokens as attendance rewards, simulating the appearance of real profits.

At the height of the trust-building process, users are invited to join what is allegedly a U.S. SEC-registered crypto exchange. In reality, the website is entirely fake, often hosted overseas and designed to mimic the appearance of legitimate platforms. Investors are encouraged to deposit funds, which then appear as inflated returns within the fake system’s dashboard.

When users attempt to withdraw their profits, they are faced with fabricated reasons for delays—such as sudden market fluctuations or the need to deposit “security collateral.” Eventually, the scammers vanish, taking the entire investment with them.

According to the FSS, “Multiple cases have emerged involving losses of tens of millions of won due to these tactics. Social media investment solicitations should be verified thoroughly before taking action.” Authorities advise checking whether a platform is officially registered with Korea’s Financial Intelligence Unit (FIU) before any transactions.

Further, red flags include requests to transfer money to personal bank accounts, unsolicited invitations to join private exchanges, and unrealistic promises of high returns.

Investigations by the National Police and the Korea Internet & Security Agency (KISA) are underway. Experts recommend preserving evidence such as transaction records, chat logs, and website URLs, and filing a report immediately in the event of suspected fraud.

As the cryptocurrency market continues to grow, so do the tactics of those looking to exploit it. More than ever, clear judgment and caution are essential for anyone investing in virtual assets.