Gang Posing as Elon Musk Associates Arrested in $1.3M Crypto Romance Scam

In a significant crackdown, South Korean authorities have dismantled a Cambodia-based criminal ring, accused of defrauding victims of around $1.3 million through romance scams that falsely advertised investment opportunities in SpaceX.

Key Takeaways

Criminal Syndicate Arrested: A gang operating from Cambodia posed as wealthy women to scam victims of $1.3 million, falsely claiming ties to Elon Musk and SpaceX.
Fraud Tactics: They used a fake SpaceX app to create an illusion of investment opportunities and built trust through scripted conversations.
Growing Threat: Romance scams are a rising issue in the cryptocurrency space, with victims losing significant amounts to emotional manipulation schemes.
Expert Advice: Security professionals stress the importance of user awareness in combating these types of scams.

Gang Posed as Elon Musk Associates Arrested in $1.3M Crypto Romance Scheme

On December 30, the Seoul Eastern District Prosecutors’ Office revealed that they charged 13 individuals from the syndicate with various offences, including operating a criminal organization and breaching the Telecommunications Fraud Victims Refund Act. Among these, 11 members were arrested, while two were indicted but not detained.

Main Content

Criminal Organization's High-Tech Deception

Operating from Poipet, Cambodia, the perpetrators masqueraded as affluent young women on messaging platforms, claiming their relatives worked closely with Tesla CEO Elon Musk. They enticingly offered access to investment opportunities in the well-known SpaceX company.

Between December 2024 and October 2025, the gang embezzled an astonishing 1.93 billion won from victims by creating a fraudulent SpaceX mobile application that was intended to intercept investment funds. This money was subsequently laundered through criminal networks into Korean won.

Crypto Romance Scheme - Chat Proof

Strategic Manipulation Techniques

The fraudsters employed carefully crafted dialogues to cultivate trust with their targets, gradually introducing investment options piggybacking on SpaceX’s market image.

Prosecutors uncovered that the gang developed a counterfeit SpaceX application, leading victims to believe they were engaging in genuine transactions; however, the funds were being funneled directly into the criminal organization.

“A relative works with Musk” was a part of the prepared scripts used to add authenticity before soliciting investments.

In addition to their high-tech infrastructure, investigators identified evidence suggesting the group was aware of impending law enforcement actions. Members prepared deceptive testimonies, claiming they were victims of job scams who had been lured to Cambodia and forced into criminal activities.

Conversation records between gang members and their recruiters reveal their acknowledgment of wrongdoing and deliberate attempts to escape responsibility.

Crypto Romance Scheme - Chat Transcript

Major Operation Yields Arrests

This coordinated investigation included prosecutors, police, and the Korea Immigration Service, identifying 20 Korean nationals involved with the organization over an eight-month span.

Authorities initially detained three counselors and one manager from July to September before apprehending further members, including recruiters and interpreters. There are still seven members unaccounted for as investigations continue.

The Rise of Romance Scams in Cryptocurrency

This incident highlights the increasing threat of romance scams targeting cryptocurrency investors around the globe.

For instance, in July, a man in his 50s lost over $73,000 after conversing daily for 46 days with a woman posing as Japanese, who persuaded him to invest in her recommended cryptocurrency platform. Initially hesitant, he was lulled into a false sense of security by fabricated profits and successful withdrawals, ultimately leading to an investment of 105 million won before the scammer vanished after requesting additional payments for alleged tax fees.

Romance scams, particularly involving “pig butchering” schemes—where emotional manipulation intertwines with investment fraud—are projected to have drained around $5.5 billion from victims in 2024, spanning approximately 200,000 cases.

These operations increasingly utilize AI tools to create convincing fake identities, with scammers employing deepfake images and videos to perpetuate deception over extended periods.

In June, U.S. authorities confiscated over $225 million in cryptocurrency associated with these schemes, while in April, Australian regulators closed down 95 companies linked to pig butchering schemes, with claims from victims exceeding $35.8 million across 14 countries.

In South Korea, despite the crypto market's size—with an estimated value of around $130 billion last year—the threat of fraud remains a significant concern.

Eastern Asia countries by Crypto Value Received Chainalysis chart

Earlier in May, Jeju police arrested 25 individuals implicated in four separate organizations that tricked 48 victims out of nearly $540,000 through fake cryptocurrency exchanges from June 2023 to April 2025.

In a related case from March, prosecutors apprehended noted crypto figure Park "Jonbur Kim" on fraud charges connected to the Artube token, causing investor losses estimated at $179.6 million.

Protecting Yourself Against Romance Scams

Security experts emphasize that combatting romance scams necessitates prioritizing user awareness as a central defense strategy.

“As code becomes less exploitable, the main attack surface in 2026 will be people,” stated Mitchell Amador, CEO of Immunefi, in an interview with Crytponews.

Navin Gupta, CEO of blockchain analytics platform Crystal, further elaborated on the psychology of modern fraud schemes. “Scammers impersonate figures of perceived authority to create an illusion of legitimacy and exploit FOMO, applying pressure that you’ll miss your opportunity if you don’t act swiftly.“

Gupta encourages individuals to adopt specific defensive postures against social engineering tactics. “Assume every unsolicited message is a potential attack. That mindset shift can filter out 80% of threat vectors,” he recommended.