- Prosecutors indict 13 suspects, seven remain at large.
- Gang was based in Cambodia, say investigators.
- Members “pretended they were the victims of a job scam.”
South Korean prosecutors have indicted 13 people accused of running a SpaceX-themed $1.3 million romance scam — and using crypto to launder the profits.
The Cambodia-based ring allegedly created a bogus SpaceX app and contacted potential victims via chat apps, posing as “wealthy young women,” the South Korean newspaper Chosun Ilbo reported.
“The scammers told potential victims that one of their relatives worked with Elon Musk [the SpaceX founder],” prosecutors said.
Romance scams are on the rise in South Korea, with criminals increasingly looking to crypto as a money laundering tool.
Citizens lost $73 million to romance scammers in the first nine months of 2025, per data compiled by the lawmaker Han Byung-do, marking a rise of over a third on 2024 figures.
And the number of illegal crypto transactions recorded from January to August 2025 surpassed the total recorded in the past two years, Yonhap reported.
Prosecutors hunt funds
The Cambodia-based fraudsters allegedly built relationships with South Korean men through a series of carefully crafted scripts.
Eventually, they suggested victims use the bogus app to make cash investments.
If the victims agreed to invest and sent money to gang-controlled bank accounts, the alleged scammers then used the money to buy unnamed cryptocurrencies and US dollars.
Police, public prosecutors, and immigration officials launched a probe into the gang in April, following complaints from alleged victims.
Officers said they identified 20 members of the ring, all South Korean citizens. Police began making arrests, in conjunction with Cambodian officers, in July. Seven suspects remain at large.
Prosecutors said the gang had crafted an alibi.
“They told us they were taken to Cambodia after being deceived by scammers who’d offered them jobs,” a spokesperson told Chosun Ilbo.
“They told us they were being coerced into committing crimes, that they were confined against their will, and being threatened with violence.”
Officials said 11 of the suspects have been retained in custody, with two others released on bail.
“We will ensure that the suspects are punished appropriately for their crimes,” the spokesperson said. “And we will do our utmost to recover the victims’ funds.”
Regulators want to curb the rise in crypto-powered crime by imposing stricter reporting rules for crypto exchange operators.
Tim Alper is a News Correspondent at DL News. Got a tip? Email at tdalper@dlnews.com.
