Thai Police Arrest 25 in $15M Fraud Scheme Targeting South Korean Victims

TLDR

• Thai police have dismantled a $15M scam ring targeting over 870 South Koreans.
• The group, known as Lungo Company, used crypto, romance, and fake lottery fraud schemes.
• Investigators arrested 25 suspects in South Korea and nine core members in Thailand.
• Lungo Company employed multiple tactics to launder stolen funds through prepaid cards and casino cash-outs.
• Thai police uncovered encrypted messaging apps like Telegram and WeChat being used for coordination.

Thai police have dismantled a scam ring worth $15 million, targeting over 870 South Koreans. The operation, known as “Lungo Company,” used crypto, romance, and fake lottery schemes to defraud victims. Investigators described the group’s activities as multi-layered, combining various fraud tactics to launder the stolen funds.

Thai Police Detain Ringleader of Lungo Group

The Seoul Metropolitan Police arrested 25 suspects tied to the Lungo Company scam. Thai police apprehended the ringleader and eight core members of the group. All nine suspects remain in custody in Thailand and await extradition to South Korea.

Investigators uncovered a sophisticated fraud operation that relied on various techniques. Victims were deceived into sending funds through fake compensation offers, romance scams, and fraudulent cryptocurrency platforms.

The Scam’s Complex Money Laundering Operation

Lungo Company used numerous methods to conceal its activities and launder money. The fraudsters employed prepaid cards, casino cash-outs, and split transactions to bypass detection systems. Thai police also found the group used encrypted messaging apps like Telegram and WeChat to coordinate the illegal activities.

High-volume over-the-counter (OTC) brokers in Southeast Asia were crucial to the final liquidation of funds. This complex web of tactics ensured that the criminals remained undetected for a long time. The group’s systematic approach to laundering funds raised concerns for investigators.

LuBian Hack Uncovered as Largest Crypto Theft

The Lungo Company bust comes shortly after another major cybercrime was uncovered in South Korea. Seoul police recently broke up a separate fraud ring that stole $28.1 million from South Korean elites. This latest investigation sheds light on the growing trend of international fraud rings targeting cryptocurrency holders.

A previously undisclosed hack of the LuBian mining pool has been confirmed as the largest crypto theft ever. Hackers stole 127,426 BTC, valued at $3.5 billion in 2020, and nearly $14.5 billion today. The stolen funds have not moved since 2024, and the thief’s identity remains unknown.

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