South Korean Fake Crypto Investment Scams Target AfreecaTV BJ Stars: $1.6M in Losses

A Seoul court has handed down a significant prison sentence in a major case targeting content creators on South Korea’s dominant streaming platform. The perpetrator, a man in his thirties, received five years imprisonment for orchestrating multiple cryptocurrency fraud schemes that victimized AfreecaTV broadcast jockeys and business associates.

The Scale of the Deception

Court documents reveal the fraudster executed over 30 separate fraudulent transactions, systematically extracting both cryptocurrency and cash from victims. One AfreecaTV BJ star alone suffered losses totaling more than $1.1 million following an initial $7,500 payment, while total documented damages reached approximately $1.6 million across multiple victims.

How the Fake Investment Scheme Worked

The sophisticated scam began innocuously on AfreecaTV’s ecosystem. The perpetrator employed the platform’s star balloon system—where fans donate digital tokens valued at around $0.08 each—to build credibility with Korean BJ creators. By gifting balloon donations worth tens of millions of KRW, the fraudster cultivated trust before pivoting to the actual scheme.

Using the platform’s private Whisper messaging function, the scammer identified vulnerable targets: streaming personalities who had publicly expressed frustration over failed cryptocurrency and stock market investments. The fake investment expert then displayed cryptocurrency wallet screenshots showing balances exceeding 3.8 million in Bitcoin, guaranteeing “two to four times returns” on invested capital and falsely promising personal compensation for any losses.

The False Promise and Reality Check

When one victim transferred funds, the fraudster later presented doctored evidence claiming their investment had grown to nearly $21 million. To reinforce credibility, the perpetrator claimed ownership of four luxury properties in Seoul’s exclusive Gangnam District—a deliberate fabrication designed to reassure the increasingly anxious victim.

The deception unraveled when the victim requested access to their funds. The fraudster offered only $75,000 withdrawal capability, triggering suspicion that led to the investigation.

The Fraudster’s True Circumstances

Court investigation revealed the perpetrator’s actual financial situation starkly contradicted his fabricated wealth narrative. The individual operated a struggling public relations company facing closure and carried debts surpassing $52,600. This same systematic approach had been deployed against a business acquaintance, establishing a deliberate pattern of victimization.

The judge determined the BJ star had essentially lost their entire personal asset base, warranting the lengthy sentence based on the severity of mental and financial devastation inflicted. The ruling underscores how Korean scammers increasingly target content creators through platform-native trust-building mechanisms before executing elaborate fake investment fraud schemes.