Thai police crack down on $15 million crypto fraud against South Korean citizens

Key points:

• Twenty-five members of the Lungo Company gang, including the ringleader, have been arrested; the damage is estimated at $15,1 million and 878 victims.
• The schemes included cryptocurrency scams, fictitious compensation, and romantic scams via social networks.
• Experts believe that the group used cross-chain transfers and illegal OTC brokers to conceal transactions.

Thai police, in cooperation with South Korean law enforcement, arrested 25 members of the Lungo Company fraud ring, which stole more than 21 billion Korean won ($15,1 million) from nearly 900 South Korean citizens. Among those detained are the leader and eight key members, who are being held in Thailand pending extradition.

The investigation found that the group operated from July 2024 to July 2025. It was divided into divisions: some were involved in romantic scams, others offered fictitious compensation for data leaks, or lured victims with fake investments in cryptocurrency.

Source: koreajoongangdaily.joins.com

Victims were tricked into transferring money to fake platforms or buying useless tokens. Fake websites were designed to look like official services, and trust was gained by using photos of “partners” from social networks or leaked databases.

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Methods and control

Thai police reported that the group’s leaders tightly controlled their members, confiscated their passports, and restricted their access to phones. The “best performers” were rewarded for their results, while those who disagreed could be intimidated or subjected to violence.

In June 2025, Thai police raided Pattaya, where several members of the group were located. A joint operation with Seoul later led to the arrest of the ringleader and key organizers.

How the money was laundered

Cybercrime expert David Sehyeon Baek reported that the group used multi-level laundering. Over-the-counter brokers in tourist areas of Thailand, prepaid crypto cards, and casinos were used to legalize the funds.

Cross-chain transfers became an important tool — moving assets between blockchains to cover their tracks. In addition, the company may have used underground services that hide connections to regulated platforms. They charge high fees (7–15%), but ensure customer anonymity.

Over the past two years, cross-chain crime has tripled, and now investigating such cases requires hundreds of hours to track transactions across dozens of protocols.

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The investigation continues

Yim Jung-wan, the head of the Seoul Police’s economic crime investigation unit, said that the leader’s connections with other groups and the sources of the databases used in the scams are being investigated.

Law enforcement officials said they are expanding the international investigation to uncover the entire money laundering chain and identify new suspects in the case.