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Why You Should Never Ignore Interest and Criminal Liability for Unpaid Severance Pay
If you are delaying severance payments because “the company is facing financial difficulties” or “we are still discussing payment with the former employee,” you need to review your legal obligations immediately. Once 14 days have passed after an employee's resignation, both statutory interest and potential criminal liability may begin to accrue. When Must Severance Pay Be Paid? Under Article 9 of the Korean Employee Retirement Benefit Security Act, severance pay must be paid within 14 days from the employee's date of retirement. In exceptional circumstances, the payment deadline may be extended by agreement between the employer and the employee. However, even where the payment deadline has been extended by agreement, legal liability may still arise. Moreover, an agreement extending the payment date does not automatically resolve issues relating to delay interest, which requires separate legal consideration. Interest on Unpaid Severance Pay Can Be Significant If severance pay remains unpaid beyond the 14-day statutory period, delay interest accrues from the following day at an annual rate of 20% under Article 37 of the Korean Labor Standards Act and Article 17 of its Enforcement Decree. This rate is approximately four times higher than the general statutory civil interest rate of 5% per annum. Example KRW 30,000,000 (Severance Pay Principal) ↓ + KRW 6,000,000 (Delay Interest After One Year) Even if the parties agree to extend the payment deadline, delay interest is not automatically waived, and the longer the dispute continues, the greater the financial burden becomes. An extension agreement alone does not eliminate delay interest unless there is a separate legal basis supporting such waiver. Can Employers Actually Be Criminally Prosecuted? Yes. Failure to pay severance pay may constitute a criminal offense punishable by up to three years' imprisonment or a fine of up to KRW 30 million under Article 44 of the Employee Retirement Benefit Security Act. This is not merely an administrative violation—it may result in a criminal record. When a complaint is filed, a labor inspector from the Ministry of Employment and Labor will investigate the facts. If the employer is found to have intentionally avoided payment or lacked any genuine intention to pay, the case may be referred to prosecutors for criminal proceedings. Particularly where multiple employees at the same workplace have not received severance payments, authorities may view the conduct as intentional, increasing the likelihood of prosecution. What Should You Do Now? 1. Pay Immediately If Possible Even a partial payment may help demonstrate good faith and may be viewed favorably when assessing intent. 2. If Full Payment Is Not Possible, Execute a Written Installment Agreement Verbal agreements are difficult to prove in the event of a dispute. A properly documented written agreement can help reduce future conflicts and clarify the payment schedule. 3. Seek Legal Advice Early if a Complaint Has Been Filed or an Investigation Has Begun Statements made during a labor investigation can directly affect subsequent criminal proceedings. Establishing an appropriate legal strategy from the outset is critical. Time Is Not on the Employer's Side The longer severance pay remains unpaid, the more unfavorable the situation becomes for the employer. Interest continues to accumulate, and disputes tend to escalate. Obtaining accurate legal advice at an early stage can ultimately reduce both financial exposure and legal risk. At Decent Law Firm, we assist employers with labor investigations, criminal complaints relating to unpaid severance pay, and dispute resolution strategies. Before the situation worsens, consider obtaining legal advice as early as possible.
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Criminal Risks and Terms of Service Issues for Crypto Investment Information Providers in Korea
Criminal Risks in Operating Crypto Investment Information Services As the virtual asset market continues to grow, services such as crypto trading signal rooms, paid investment information memberships, and crypto advisory-style services have become increasingly common in Korea. At the same time, regulatory scrutiny over paid investment information services has been increasing. According to the Financial Supervisory Service’s 2024 inspection results for quasi-investment advisory businesses, violations were found in 112 out of 745 businesses reviewed, including cases involving unregistered investment advisory activities. While these figures do not directly relate only to virtual asset cases, they show that Korean regulators are paying closer attention to paid investment information services in general. In practice, disputes that begin as refund complaints may escalate into criminal complaints involving fraud, violations of the Financial Investment Services and Capital Markets Act, or violations of the Act on Reporting and Using Specified Financial Transaction Information. In these cases, terms of service, contracts, refund policies, and user communications often become key evidence. This article explains the major legal issues that may arise and why terms of service should be reviewed carefully before a dispute develops into a criminal investigation. Key Laws That May Apply Issue Main Legal Point Potential Penalty Fraud Obtaining property or financial benefit through deception Under the current Criminal Act, imprisonment for up to 20 years or a fine of up to KRW 50 million. The applicable law may vary depending on when the alleged conduct occurred. Capital Markets Act Violation Unregistered investment advisory activities may become an issue where the service involves security tokens or is combined with financial investment product advisory services Imprisonment for up to 3 years or a fine of up to KRW 100 million Specified Financial Transaction Information Act Violation Operating as an unregistered virtual asset service provider Imprisonment for up to 5 years or a fine of up to KRW 50 million E-commerce Law Violation Improper restriction of cancellation, withdrawal, or refund rights Administrative fines, corrective orders, or other administrative measures Administrative sanctions and criminal penalties may proceed separately. Depending on the facts, the same business conduct may give rise to more than one legal issue. Why Terms of Service Become Evidence in Criminal Investigations When a refund dispute turns into a criminal complaint, investigators often review the terms of service and user agreements at an early stage. Terms of service can show what kind of service the business claimed to provide, how it explained investment risk and refund conditions, and whether the actual operation matched what was written in the documents. In particular, investigators may compare the terms of service with the actual sales process, user communications, and service operation in the following areas. 1. Fraud and Deceptive Conduct For fraud allegations, investigators do not look only at whether the user suffered a loss. They examine what the business told the user, whether the possibility of loss was clearly explained, whether any statements implied guaranteed profits, and whether the written terms matched the actual service. If the terms of service clearly state that investment losses may occur and that the service does not guarantee profits, and if similar explanations were repeatedly given during consultations or user communications, these records may help dispute allegations of deception. On the other hand, if the terms contain disclaimers but the actual sales process included statements similar to “guaranteed profits,” “loss recovery,” or “risk-free trading,” the inconsistency between the written terms and the actual operation may become unfavorable evidence. 2. Capital Markets Act Issues Capital Markets Act issues do not automatically arise in every crypto investment information case. However, if the relevant virtual asset may be treated as a security token or if the service is connected with stock, derivatives, or other financial investment product advisory services, the operation may be reviewed under the Capital Markets Act. For example, even if the terms describe the service as “general information provided to an unspecified number of users,” the actual operation may still become problematic if it involved one-on-one recommendations, bidirectional paid chat rooms, or personalized investment judgments. In that situation, the terms of service may be compared against how the service was actually operated. 3. Virtual Asset Service Provider Issues Under the Specified Financial Transaction Information Act, a business may be required to register as a virtual asset service provider if it is not merely providing information but is also involved in virtual asset transactions, brokerage, transfer, custody, or management. Even if the terms of service define the business as an information service, the actual operation may be reviewed differently if the company handled user assets, executed trades, assisted repeated transfers, or received fees for transaction-related services. Supreme Court Guidance on Virtual Asset Service Provider Status In a case involving the Specified Financial Transaction Information Act, the Supreme Court of Korea held that a person may generally be regarded as a virtual asset service provider if they continuously and repeatedly conduct virtual asset transactions for the benefit of unspecified customers or users and receive compensation for doing so. This means that the actual substance of the service matters. If the business repeatedly participates in transactions and receives fees, it may be difficult to rely only on written terms stating that the service is limited to information provision. Key Issues to Review at the Early Investigation Stage For operators of crypto investment information services, the early stage of an investigation is critical. The following issues should be reviewed first. First, the consistency between the terms of service and actual operation should be checked. This includes the scope of service, refund conditions, risk disclosure language, and how the service was actually provided to users. Second, businesses should review whether any terms, advertisements, landing pages, chat messages, or sales scripts could be interpreted as guaranteeing profits or compensating losses. Since the 2024 amendments to the Capital Markets Act, restrictions on quasi-investment advisory businesses have been strengthened, including rules related to bidirectional channels and misleading profit-guarantee advertisements. Third, the communication channel should be reviewed. Whether the service was operated as a one-way information channel or as a bidirectional advisory channel may affect the legal assessment. Fourth, the initial statement to investigators should be prepared carefully. If the operator explains the terms inaccurately or gives statements that do not match the actual operation, it may become more difficult to defend the case later. DECENT Law Firm’s Virtual Asset Practice Team Cases involving crypto investment information services often involve multiple legal issues at the same time, including fraud, the Capital Markets Act, the Specified Financial Transaction Information Act, and e-commerce regulations. DECENT Law Firm’s Virtual Asset Practice Team assists clients from the early investigation stage by reviewing terms of service, service operation records, user communications, refund policies, and the legal issues relevant to each allegation. If you have been contacted by Korean investigative authorities, or if a refund dispute may escalate into a criminal complaint, it is important to review your response strategy before the first statement is given. This content is provided for general informational purposes only and does not constitute legal advice for any specific case.
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False Naver Blog Posts Targeting Your Business in Korea: How to Request Removal
When Online Defamation Affects Your Business in Korea In South Korea, Naver remains one of the most influential online platforms for search, blogs, and reputation management. For businesses operating in Korea, what appears on Naver can directly affect customer trust, business inquiries, and brand credibility. In recent years, some businesses have discovered Naver blog posts that mention their company or brand name together with words such as “scam,” “fraud,” or “victim warning.” These posts may appear professional and persuasive, even when the underlying facts are inaccurate, misleading, or unrelated to the business itself. For foreign-owned companies or international businesses operating in Korea, this type of reputational damage can be especially difficult to detect and respond to. The content may be written in Korean, indexed on Naver, and viewed as credible by local customers before the company becomes aware of it. Under the Act on Promotion of Information and Communications Network Utilization and Information Protection (the “Network Act”), a business whose reputation or other rights have been infringed online may request deletion of the content or temporary blocking of access to the content. Applicable Law ▪️Article 44-2 of the Network Act: Deletion Requests and Temporary Measures Article 44-2(1) of the Network Act provides that a person whose rights, including privacy or reputation, have been infringed through information distributed via an information and communications network may request the relevant service provider to delete the information or publish a rebuttal. Under Article 44-2(2), once such a request is received, the service provider must take necessary measures, such as deletion or temporary blocking, without delay and notify both the requester and the person who posted the content. Where it is difficult to determine whether a rights infringement has occurred, or where a dispute between the parties is expected, Article 44-2(4) allows the service provider to temporarily block access to the content. The duration of such temporary measures may not exceed 30 days. ▪️Criminal Liability for Online Defamation If an online post contains false statements of fact that damage another person’s or company’s reputation, Article 70(2) of the Network Act may apply. The statutory penalty is imprisonment for up to seven years, disqualification for up to ten years, or a fine of up to KRW 50 million. Even if the statements are true, Article 70(1) may still apply if the post was made with intent to defame. In that case, the statutory penalty is imprisonment for up to three years or a fine of up to KRW 30 million. Category Legal Basis Possible Penalty Defamation by false statements of fact Network Act, Article 70(2) Up to 7 years’ imprisonment or KRW 50 million fine Defamation by true statements of fact Network Act, Article 70(1) Up to 3 years’ imprisonment or KRW 30 million fine Civil damages Civil Act, Article 750 Compensation for financial and reputational harm Criminal liability depends on the specific content, context, and intent behind the post. However, a business may still pursue platform-level removal or temporary blocking even where the criminal threshold is not yet clear. Key Legal Issues ▪️Scope of Defamation Under Article 44-2 The standard for requesting deletion or temporary blocking under Article 44-2 is broader than the standard for criminal defamation under Article 70 of the Network Act or Article 307 of the Criminal Act. In practice, the key issue is whether the online post infringes the company’s rights, including its reputation. It is not always necessary to prove criminal intent at the initial platform reporting stage. For example, if a Naver blog post places a company’s brand name next to terms such as “scam” or “fraud,” while the actual content concerns an unrelated impersonator or third party, the overall impression created for ordinary readers may still be misleading. In some cases, this may support a removal or temporary blocking request. Evidence of reputational harm is also important. Businesses should preserve records showing the impact of the post, such as customer complaints, cancelled inquiries, KakaoTalk messages, emails, screenshots, call logs, and changes in online search results. ▪️What Happens If the Poster Files an Objection If the person who posted the content files an objection, the temporary blocking may remain in effect for 30 days from the date the objection is received. After that period, the post may be restored. In that situation, the affected business may consider filing a defamation mediation request with the Korea Communications Standards Commission’s Internet Harm Relief Center. If mediation is successful, the settlement may have an effect similar to a civil settlement agreement. The Limits of Platform Reporting Alone Filing a removal request through Naver’s Rights Protection Center is an important first step, but it may not fully resolve the problem. If the poster files an objection, the content may be restored. If similar posts are uploaded again under different accounts or URLs, each post must usually be addressed separately. Where harmful posts are being published repeatedly or systematically, platform reporting alone may not be enough. In such cases, a formal letter of demand issued in the name of a Korean law firm, together with potential criminal complaints or civil damages claims, may be more effective. How Decent Law Firm Can Assist Responding to false or misleading online content in Korea requires more than simply submitting a platform report. Businesses must consider the wording of the removal request, the legal basis for rights infringement, the preservation of evidence, and the possibility of further civil or criminal action. Decent Law Firm assists businesses with each stage of this process, including removal requests, formal letters of demand, Korea Communications Standards Commission proceedings, criminal complaints, and civil damages claims where appropriate. If you have identified Naver blog posts or other online content that may be harming your business in Korea, please share the relevant URLs and a brief explanation of the impact. We will review the matter and advise on the most appropriate course of action. ※ This content is provided for general informational purposes only and does not constitute legal advice in relation to any specific matter.
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AI Crypto Scam: What to Do If You Cannot Withdraw Your Funds
As interest in artificial intelligence continues to grow, crypto scammers are increasingly using “AI-powered investment platforms” and “AI trading systems” to attract investors. These scams often appear sophisticated. They may provide polished whitepapers, fake AI trading dashboards, technical presentations, and fabricated success stories to create the illusion of legitimacy. At first, small withdrawals may work normally. However, once a larger amount is invested, victims frequently encounter withdrawal restrictions and repeated requests for additional payments. For foreign investors living in or interested in Korea, understanding these patterns early can make a significant difference in preserving evidence and responding effectively. What Is an AI Crypto Scam? An AI crypto scam is a type of cryptocurrency fraud where scammers falsely claim to operate AI-based trading technology, automated investment systems, or advanced blockchain algorithms in order to obtain investor funds. Unlike older crypto scams that relied mainly on unrealistic profit promises, AI-related scams tend to look far more convincing because they use technical language and complex-looking systems that ordinary investors cannot easily verify. Common examples include: “AI automated trading” platforms Fake AI investment algorithms AI-powered coin analysis systems Fabricated development teams and partnerships Telegram or KakaoTalk investment groups promoting “AI-selected coins” In many cases, the underlying technology either does not exist at all or consists only of publicly available open-source tools presented as proprietary AI technology. Common Types of AI Crypto Scam Schemes Fake AI Technology and Whitepapers Scammers often publish professional-looking whitepapers filled with technical terminology, charts, and fake development roadmaps. Before investing, investors should carefully review: Whether the developers are real people LinkedIn profiles and professional history GitHub repositories and development activity Whether partnerships and investors actually exist Many fraudulent projects use fabricated team members or copied technical materials. Presale Investment Fraud Another common scheme involves selling tokens before a supposed exchange listing. Victims are told they are receiving a “special presale opportunity” before the token is listed on major exchanges such as Upbit or Binance. Typical warning signs include: Guaranteed future listings Promises of “100x returns” VIP insider investment opportunities Claims of limited early-access token allocations In reality, many projects disappear entirely after collecting investor funds. Fake Exchanges and AI Trading Platforms Some scammers direct victims to private trading apps or fake exchanges operated entirely by the fraud group. The structure often follows the same pattern: Small withdrawals are allowed initially Investors are encouraged to deposit larger amounts Withdrawals become restricted Additional fees are demanded Communication suddenly stops Requests to install unofficial apps or use unknown platforms should be treated with extreme caution. Signs That You May Already Be a Victim If any of the following situations apply, additional transfers should be stopped immediately. Requests for Taxes or Verification Fees One of the most common scam tactics is demanding advance payment before withdrawals are processed. Victims may be told they must pay: Taxes Wallet activation fees AML verification costs Security deposits International transfer charges Legitimate exchanges generally do not require separate personal transfers in order to release withdrawal funds. Financial Authority Impersonation Some scammers pretend to represent regulators, compliance teams, or financial institutions. They may falsely claim that: Your account has been flagged for money laundering Additional compliance checks are required Korean financial authorities are reviewing the transaction A temporary security payment must be made These are frequently used to pressure victims into sending more money. Continuous Withdrawal Delays Scammers often use technical excuses to delay withdrawals, including: Wallet maintenance Node synchronization problems Security upgrades Hacking attempts International approval delays Repeated postponements are a major warning sign. Sudden Loss of Communication Victims often report that customer service suddenly disappears after additional payments are refused. In many cases: Telegram administrators block users Support responses become automated Account managers disappear entirely Websites or apps suddenly shut down What To Do If You Are a Victim of an AI Crypto Scam 1. Stop Sending Additional Money No matter what explanation is provided, additional payments should not be made. Scammers frequently exploit victims psychologically by claiming that “one final payment” will unlock the withdrawal process. In practice, additional deposits usually lead only to larger losses. 2. Contact Your Bank Immediately If the transfer was recent, contact your bank as quickly as possible and explain that the transaction may involve fraud. Unlike voice phishing cases, crypto-related fraud may not always qualify for immediate account suspension under Korean law. However, early reporting can still help preserve transaction records and improve response options. Obtaining a police incident confirmation document may also assist in certain cases. 3. Preserve All Evidence The following materials should be saved immediately: Whitepapers and advertisements Wallet addresses and transaction records Screenshots of the platform Telegram, KakaoTalk, or email conversations Voice recordings and investment solicitations Contracts or investment documents Because fraudulent platforms can disappear without warning, early evidence preservation is critical. 4. Report the Case and Seek Legal Advice AI crypto scams may involve multiple legal issues, including: Fraud Illegal fundraising schemes Financial regulatory violations Money laundering-related offenses Electronic financial transaction violations Many scams also involve overseas entities, cross-border fund transfers, and anonymous crypto wallets, making early strategic response especially important. The longer the delay, the more difficult asset tracing and evidence collection may become. Early Response Can Make a Difference AI crypto scams are not simply failed investments. In many cases, they involve organized fraudulent operations designed to systematically prevent withdrawals and extract additional payments from victims. If withdrawals have been blocked or communication has stopped, it is important to review the situation carefully and respond quickly. Decent Law Firm’s digital asset and crypto disputes team advises clients on crypto investment fraud, asset tracing, criminal complaints, and cross-border legal response strategies related to cryptocurrency scams in Korea. Even with limited initial materials, it may still be possible to assess the structure of the case and discuss available legal options.
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AI Investment Scams in Korea: Common Tactics and What Victims Should Do
If phrases like “AI-powered trading,” “AI stock recommendations,” or “AI-managed investment platforms” sound trustworthy, that is exactly what scammers are relying on. Recently, investment fraud schemes using AI-related marketing have rapidly increased in Korea and overseas. Many scams now combine fake AI trading systems, deepfake celebrity endorsements, fabricated profit dashboards, and fake news articles to make fraudulent platforms appear legitimate. For foreign residents, overseas investors, and expatriates living in Korea, these scams can be especially difficult to identify because the platforms often imitate real Korean financial services or use Korean-language media branding to create credibility. This article explains how AI investment scams typically operate, what warning signs to watch for, and what legal steps victims should consider in Korea. What Is an AI Investment Scam? An AI investment scam refers to a fraud scheme that claims to use artificial intelligence, automated trading algorithms, or machine-learning technology to generate investment profits. In many cases, the “AI system” either does not exist at all or performs no real trading activity. Instead, scammers use technical jargon and fake performance data to convince victims that profits are being generated automatically. Unlike traditional investment fraud that simply promises high returns, AI investment scams exploit public trust in advanced technology. Because most investors cannot independently verify how AI systems actually work, the fraud often goes undetected until substantial losses occur. Some operations even impersonate legitimate financial companies, fintech businesses, or investment professionals to appear more credible. Common Types of AI Investment Scams One of the most common tactics involves so-called AI automated trading platforms. Victims are told that an AI system continuously analyzes the market and guarantees stable monthly profits. In reality, early investors may receive small payouts to build trust before larger deposits are requested. Another rapidly growing issue is the use of deepfake videos featuring celebrities, economists, or business figures. Fraudsters use AI-generated voice and facial synthesis technology to create fake endorsement videos promoting fraudulent investment platforms. These videos are frequently distributed through YouTube, Instagram, Telegram, KakaoTalk, and other social media channels. Scammers also create fake investment websites that closely resemble legitimate exchanges or financial news outlets. Some schemes use fabricated news interviews or cloned media websites to make the platform appear trustworthy. Victims are often shown fake account dashboards displaying large profits generated by “AI trading.” However, when they attempt to withdraw funds, the operators demand additional payments for taxes, authentication fees, security deposits, or account verification. Once additional money is sent, communication is typically cut off. How to Identify AI and Deepfake Investment Fraud As deepfake and AI technologies become more sophisticated, it is now more important to verify the source of information rather than relying only on visual impressions. If a celebrity, financial expert, or company appears in an advertisement, investors should confirm the partnership through official websites or verified social media accounts. Fraudulent advertisements frequently misuse public figures without authorization. Fake news articles are another major warning sign. Scammers often clone the design of well-known Korean media outlets and publish fabricated interviews promoting investment platforms. Investors should carefully review the actual domain address and compare it with the legitimate news website. It is also important to verify whether the company is properly registered with Korean financial regulators. Businesses offering investment advisory or discretionary investment services in Korea may require regulatory registration depending on the structure of the service. Promises such as “guaranteed returns,” “risk-free profits,” or “principal protection” should also be treated with extreme caution. Under Korean financial regulations, guaranteed investment profits are heavily restricted and frequently associated with illegal schemes. What Victims Should Do Immediately If you suspect that you are dealing with an AI investment scam, the first priority is to stop sending additional funds immediately. Scammers commonly claim that extra payments are required to unlock withdrawals, pay taxes, verify accounts, or complete compliance checks. These demands are often part of the fraud itself. Victims should contact their bank as quickly as possible to request a payment suspension or fraud report. In Korea, rapid action can sometimes improve the chances of freezing funds before they are transferred further. Evidence preservation is also critical. Victims should immediately save and back up: Chat and messenger conversations Transaction and remittance records Screenshots of the platform and account balances Advertisements and promotional videos Website URLs and account information Because many operators use overseas servers, borrowed accounts, or cryptocurrency transfers, early evidence collection and prompt reporting are extremely important. In serious cases, criminal complaints, account tracing procedures, and civil recovery actions may need to proceed simultaneously to maximize the possibility of recovering funds. AI Does Not Change the Legal Nature of Fraud Although these scams use modern technology and sophisticated marketing tactics, the underlying legal issues remain largely the same. Under Korean law, AI investment scams may involve criminal fraud, illegal fundraising schemes, violations of financial regulations, and other financial crimes. The use of deepfake technology and overseas infrastructure simply makes investigation and recovery more difficult. The earlier victims respond, preserve evidence, and seek legal guidance, the higher the likelihood of preventing additional losses and improving recovery options. Decent Law Firm advises clients on AI investment scams, deepfake-related fraud, cryptocurrency-related investment schemes, and cross-border financial crime matters in Korea.
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Crypto Romance Scams in Korea: Fake Exchanges and Investment Fraud You Should Watch Out For
If someone you met through social media suddenly encourages you to invest in cryptocurrency through a private platform or “exclusive opportunity,” there is a high chance it could be a romance scam. In recent years, crypto-related romance scams have become increasingly sophisticated in Korea and globally. Instead of directly asking victims for money, scammers now build emotional trust first and then lure victims into fake cryptocurrency exchanges or fraudulent overseas investment platforms. Because digital assets can be transferred and laundered quickly across borders, fast legal action and evidence preservation are critical once suspicious activity is identified. What Is a Crypto Romance Scam? A romance scam is a type of fraud where scammers build emotional relationships online through platforms such as Instagram, Facebook, Telegram, KakaoTalk, or dating apps, and then exploit that trust for financial gain. Recently, these scams have evolved into cryptocurrency investment fraud schemes involving fake exchanges and manipulated trading platforms. Scammers often pretend to be: Overseas professionals or business owners Wealthy investors Crypto traders or financial experts Individuals interested in a long-term relationship Rather than immediately discussing investments, they usually spend days or weeks building emotional intimacy and trust. Once the victim becomes emotionally attached, the scammer introduces a “special investment opportunity” or claims they can help generate high returns through crypto trading. In many cases, victims are initially allowed to withdraw small amounts of money to create the illusion that the platform is legitimate. The Typical 5-Step Structure of a Crypto Romance Scam 1. Initial Contact Through Social Media or Dating Apps Scammers approach victims through Instagram, Facebook, Telegram, KakaoTalk, or international dating platforms using fake profiles designed to appear trustworthy and successful. 2. Building Emotional Trust They communicate consistently and intensively, sharing personal stories and emotional conversations to create psychological closeness. At this stage, investment discussions are usually minimized. 3. Introducing Cryptocurrency Investments Once trust has been established, the scammer begins sharing screenshots of trading profits or investment success stories. Victims are often told things like: “This is for our future together.” “I want to help you make money too.” “This opportunity is only available to a few people.” 4. Moving the Victim to a Fake Exchange The victim may first purchase cryptocurrency through a legitimate exchange before being directed to a separate “high-return platform” or overseas exchange controlled by the scammers. The platform may display fake profits and even allow limited withdrawals initially to gain further trust. 5. Withdrawal Refusal and Additional Deposit Requests Once larger amounts are invested, the victim is suddenly unable to withdraw funds. The scammers then demand additional payments for: Taxes Security deposits Verification fees Unlocking accounts Anti-money laundering clearance When the victim refuses or becomes suspicious, communication is cut off and the website often disappears entirely. Why Victims Often Lose Significant Amounts Most crypto romance scams begin with relatively small investments. However, repeated emotional manipulation and fabricated profit displays often lead victims to invest life savings, loans, retirement funds, or borrowed money. Many victims delay reporting the scam because they emotionally trust the scammer or feel embarrassed about the situation. Secondary scams are also common. After the initial fraud, victims may be contacted by fake “recovery companies” promising to retrieve lost cryptocurrency in exchange for upfront fees. If a company or individual requests advance payment without clear professional credentials, caution is strongly advised. What You Should Do If You Become a Victim ✔️ Stop Sending Additional Funds Immediately Claims such as “You must deposit more money to unlock withdrawals” are common scam tactics. Do not make additional transfers under any circumstances. ✔️ Preserve All Evidence The following materials can become critical evidence during investigations and legal proceedings: Social media profiles and usernames Telegram, KakaoTalk, or direct message conversations Wallet addresses and transaction records Screenshots of the trading platform Exchange URLs and account details Bank transfer records ✔️ Seek Legal Assistance Quickly Cryptocurrency-related fraud cases often involve rapid fund movement, overseas transfers, and money laundering structures. Early legal review can help victims preserve evidence, prepare criminal complaints, and establish an effective legal strategy with investigative authorities. You Do Not Have to Handle a Crypto Romance Scam Alone Crypto romance scams are highly organized financial crimes that exploit emotional trust and psychological vulnerability. If you suspect fraudulent activity or have already suffered losses, it is important to seek professional legal guidance as early as possible. The Digital Asset Team at Decent Law Firm provides practical legal strategies covering transaction analysis, evidence preservation, and criminal investigation matters related to cryptocurrency fraud. Lawyers with experience in digital asset disputes and crypto-related investigations can help review the most appropriate legal options for your situation.
