“If you haven’t had fun investing in coins, just leave it to us”...Coin proxy investment warning

A YouTuber impersonating a coin version celebrity
Stealing 18 million won in proxy transactions
“Risks of proxy investment by individuals rather than professionals”

#Mr. A, an office worker in his 20s living in Gyeonggi-do, recently transferred $13,000 (approximately 18 million won) to coin YouTuber L in the name of coin proxy transaction. L introduced himself as a famous figure in the coin community and attracted about 3,500 subscribers, saying he would even provide personal counseling for people in difficult times. Accordingly, Mr. A also had a one-on-one conversation with L for about two and a half months through the social network service (SNS) framework, and came to trust him in a desperate situation. However, L went into hiding after receiving 18 million won in the name of agency transactions. Mr. A expressed his frustration, saying, “Looking back, it doesn’t make sense, but I’ve been going through a difficult time these days, and when I approached you with serious counseling, I feel like I was blind and deaf.”

According to the virtual asset industry on the 19th, a victim who lost about 18 million won due to a coin YouTuber filed a complaint with the police on the 15th.

The victim claimed that he paid 18 million won to Coin YouTuber L in the name of proxy coin trading, of which he received only about 400 dollars (about 550,000 won) back. L persuaded Mr. A that he could do proxy coin trading and encouraged him to do so, saying that many investors were already participating.

Mr. A said, “At first, he only gave me $400, but the next day he refused to give me money, saying that there was a loss in the transaction. I asked him to return the deposit of $3,000 (about 4 million won) first, but he did not listen and made various excuses.” Currently, YouTuber L has deleted his channel. The conversation history with him has also been deleted.

Coin YouTuber L introduced himself as a famous coin investor and attracted subscribers by explaining investment methods and investment views to investors who had difficulty investing in coins.

Victim A believed YouTuber L's words that people who were struggling or had difficulties should apply for 1:1 counseling and asked him for advice. Mr. A explained that he spoke with L for two and a half months from early August to mid-October and gained trust during the conversation.

However, from the beginning, YouTuber L did not propose proxy coin trading to Mr. A.

After building trust for two and a half months, L brought up the topic of ‘two-way transaction’ one day. Two-way trading was a transaction in which Mr. A held an opposing position with the exchange designated by YouTuber L through futures trading, and received a certain amount of commission when the stock on the exchange was liquidated.

YouTuber L designated an exchange to Mr. A and asked him for money to buy ‘Tetter’ coins at that exchange. L asked to deposit cash into a designated account to purchase coins. Mr. A said that he felt reluctant because the exchange would purchase the coins by depositing them into his account rather than purchasing them directly.

For example, if 1 million won is deposited into an account designated by L, a certain amount of Tether will come into the exchange and futures trading will be conducted with that amount. If the exchange account takes a short (sell) position with 100 times leverage, Mr. A takes a long (buy) position with 5 times leverage through his account. Here, 100x leverage short means that even if the coin price falls by just 1%, you will receive a 100% return on the investment principal. YouTuber L said here that when the stock on which he held a 100x short position on the exchange is liquidated, the stock will go into the exchange and he will receive a certain fee, so he will pay back about 30% of the fee to Mr. A.

At first glance, it may seem that there will be no loss as all you have to do is liquidate the stock on the exchange, and the victim will also take an opposing position with this account, but that is not the case. This is because it is extremely rare for novice investors to make money in futures trading. Mr. A tried this method just twice, but ended up losing hundreds of thousands of won.

I later found out that the exchange did not even have a system for withdrawing Tether coins. On a normal exchange, purchased Tether can be withdrawn. In addition, it was an exchange that was not reported to the Financial Services Commission's Financial Safety Information Service.

During this process, Mr. A said that he would not do any more transactions, and at this time, YouTuber L, with whom he had built a sense of trust, approached him in a friendly and friendly manner and suggested proxy coin trading. Mr. A said that the problem was that he had developed a sense of trust and trusted YouTuber L.

Cho Seong-geun, an attorney at Daeryun Law Firm, said, “It is extremely risky to entrust investments to individuals who are not professionally qualified, as the risks are high,” and added, “Financial consumers need to be especially careful as transactions with high profits in a short period of time are highly likely to be fraudulent.”

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