South Korean authorities have arrested 19 members of a fraudulent social media chat group that swindled 308 investors out of nearly $19 million.

The arrested individuals operated an open chat room, scamming investors by promising quick profits if they invested in unlisted coins. Initially, the chat room seemed to offer legitimate cryptocurrency trading tips and even delivered some profits before persuading members to invest in these unlisted coins, according to Seungwon Lee.

### Unlisted Coins Scam

The unlisted coins never yielded any profits, and once investors began demanding their money back, the scammers severed ties. When victims tried to withdraw their funds, the gang demanded withdrawal fees. If the victims refused, they were cut off from further contact.

### Arrests and Investigation

The Daegu Police Agency’s criminal task force made the arrests on May 21. However, they believe that at least six other suspects are still at large and are currently overseas. Interpol has been requested to issue red notices for these individuals.

### Pig-Butchering Tactics

The gang leader employed pig-butchering tactics to recruit new members. According to the police report, the leader promised individuals employment in Myanmar, encouraged them to illegally enter the country, and then forced them to join the criminal organization. The leaders confiscated passports and cell phones, confining individuals to coerce them into committing fraud.

Pig butcher scams typically begin when scammers gain the trust of a victim and then persuade them to make large investments in seemingly lucrative schemes. Once the victim transfers the funds, the scammers disappear with the money.

Nithin Kamath, founder of Zerodha, posted on X, “As the name implies, a pig butchering scam involves fattening the victim before butchering. Scammers gain the trust of users by using fake profiles. They use the pretense of love and friendship to gain the trust of users and then induce them to send money for jobs and high-return investments and steal the money. These scams are global, and their scope is staggering.”

### Related Global Arrests

These arrests coincide with other global crypto-related arrests. On Monday, the United States Justice Department arrested two Chinese nationals involved in a $73 million money laundering scheme using similar pig-butchering tactics.

The police are currently trying to locate the stolen funds and have requested Interpol’s assistance in finding six additional individuals.