South Korea Dismantles KRW39B SIM-Swap Crypto Heist

Published: 2025-09-04 09:05:14 |

South Korean police have dismantled an international SIM swap fraud ring that stole KRW39 billion in a crypto heist targeting 258 high-net-worth individuals, including corporate executives, celebrities and crypto investors. Between July 2023 and April 2024, the gang breached six government, public institution and financial portals to steal personal data. Using 118 SIM cards opened under 89 names, they bypassed non-face-to-face authentication to siphon funds from bank and crypto wallets, with 16 victims losing KRW39 billion and a single loss peaking at KRW21.3 billion. An attempted KRW8.4 billion HIVE stock transfer by BTS star Jungkook was flagged and blocked. Authorities froze KRW25 billion in attempted thefts, recovered KRW12.8 billion and seized KRW4.4 billion in Ethereum. Sixteen suspects were arrested, including two Chinese ringleaders extradited via Thailand. The SIM swap fraud operation exploited weak SMS verification and non-face-to-face checks, highlighting the need for improved SIM swap fraud safeguards and cybersecurity measures across crypto platforms.

Neutral

While the dismantling of a major SIM swap fraud ring underscores ongoing security risks for crypto investors, it does not directly affect cryptocurrency fundamentals or network integrity. Short-term, heightened security concerns may lead to market caution around assets like Ethereum, but recovered funds and law enforcement action can bolster confidence. Long-term, improved SIM swap safeguards and stronger cybersecurity measures should enhance market stability. Overall, the impact on crypto prices is expected to remain neutral.