AfreecaTV's BJ (broadcast jockey) stars have become the latest targets of South Korea's increasingly sophisticated cryptocurrency scammers.
Asia Kyungjae reported that the Seoul Central District Court sentenced a “man in his 30s” to five years in prison for virtual currency-related fraud.
AfreecaTV BJ spotlights $1.6 million song
AfreecaTV is South Korea's leading real-time streaming platform, and its biggest BJ stars have become celebrities in their own right.
However, scammers have begun exploiting the platform to try to lure BJ stars into participating in complex cryptocurrency fraud projects.
The court heard that an anonymous fraudster stole virtual currency and cash from BJ Starr and an unnamed “businessman” on “more than 30 occasions”.
The scammer first won the victim's trust by donating BJ “star balloons'' worth “tens of millions of won,'' and deceived the victim.
Afreeca launched the Star Balloon Project in 2017. Each Star Balloon is worth approximately $0.08, and Koreans can replenish their balloon balance online and offline to spend on the platform.
Streamers can also use “balloons” at convenience stores and other stores.
Many of AfreecaTV's BJ stars use balloons as their main source of income, with fans making donations during live streams.
The judge heard the scammers used the balloon donations to “cure favor” with their victims.
After gaining BJ Star's trust, the scammers began communicating with the streamer using the platform's Whisper feature.
Scammers targeted the live streaming star after hearing complaints about a series of failed crypto investments and stock market investments.
Fraudster “uses fake crypto wallet data to deceive victims”
The scammer “posed as a cryptocurrency investment expert,” the court said. They showed the stars “a Bitcoin wallet balance worth over 3.8 million yen.” The scammer told the star:
“If you invest as I suggest, I guarantee you a 2-4x return. Even if you lose money, I will make it up with my own money.”
The court heard that one of the BJ stars wired more than $7,500 to the scammer, who “subsequently paid a further $1.1 million” in November 2021.
In January 2022, the scammer showed BJ a screenshot “proving” that the investment was now worth about $21 million, the court heard.
The scammer also told the “worried” broadcaster there was no need to worry as he owned “four houses” in Seoul's upscale Gangnam district.
However, BJ became suspicious as the scammer had only agreed to let Starr access funds worth $75,000.
Despite the scammer's bold claims, the court heard that “in reality” he was “running a public relations firm on the verge of going out of business”.
The scammer had “over $52,600 in debt” and had also used the same trick to scam a businessman he knew.
The presiding judge explained, “BJ suffered damages equivalent to virtually all of his assets.''
The judge said a lengthy prison sentence was necessary given the extent of the “emotional and economic damage sustained”.
South Korea's first homemade reconnaissance satellite transmitted images of central Pyongyang in one of its first missions since it was launched late last year, Yonhap News reported https://t.co/8OD68ZxzM2
— Bloomberg (@business) March 3, 2024
Just over a year ago, a leading domestic security provider warned of an increase in crypto mining-related scams in South Korea.
Meanwhile, a 2023 study found that 71% of Korean cryptocurrency fraud victims were women, with the majority under the age of 39.
