Seoul Police Hunt Suspect in $4.5K Crypto Scam Amid Extreme Fear Sentiment

VADODARA, February 2, 2026 — Seoul police intensify a manhunt for a suspect accused of stealing $4,500 in a fraudulent cryptocurrency deal. This daily crypto analysis reveals a localized scam unfolding against a backdrop of global market turmoil. According to TV Chosun, the theft occurred on January 17 in Gangnam's Nonhyeon-dong neighborhood.

Investigation: The Mechanics of a Gangnam Crypto Scam

Per the Seoul Gangnam Police Station, the suspect used Danggeun, a popular South Korean second-hand marketplace app. He lured a victim with an offer to sell cryptocurrency below market rate. The suspect fled with the victim's cash after an in-person meeting. The theft involved 6 million won (approximately $4,500). Police forensic teams are analyzing digital footprints from the Danggeun platform.

This incident represents a classic liquidity grab targeting retail FOMO. The suspect exploited a Fair Value Gap (FVG) between advertised and actual market prices. On-chain data indicates such peer-to-peer scams often spike during periods of high volatility. The official police report details the Gangnam transaction.

Market Context & Historical Precedent

Historically, localized fraud incidents correlate with broader market stress. The 2021 cycle saw similar in-person scams surge during correction phases. In contrast, institutional markets operate under stricter KYC/AML frameworks. This event the regulatory arbitrage between formal exchanges and peer-to-peer platforms.

, South Korea's crypto market remains a high-activity zone. The incident follows other regional regulatory actions. For instance, the FTC's probe into Upbit operator Dunamu highlights increasing scrutiny. Related developments include jurisdictional clashes in prediction markets and Vitalik Buterin's DAO token proposals.

Technical Architecture & Price Action

Market structure suggests extreme fear is driving technical breakdowns. Bitcoin broke below the $76,000 support level. This created a bearish order block. The current price of $75,281 sits near the 0.618 Fibonacci retracement from the last swing high.

Consequently, the RSI on daily charts shows oversold conditions at 28. The 50-day moving average at $78,500 now acts as resistance. Volume profile analysis indicates weak buying interest at current levels. A critical support cluster exists between $73,500 and $74,000. This zone represents a high-volume node from previous accumulation.

By The Numbers

Why It Matters

This scam matters for market structure. It highlights the vulnerability gap between institutional and retail participants. Institutional flows dominate price action through ETF vehicles and OTC desks. Retail scams like this represent noise in the signal. However, they erode trust in peer-to-peer ecosystems.

On-chain data indicates UTXO age bands show long-term holders remain inactive. Short-term holders are capitulating. This creates selling pressure. The Gamma Squeeze potential from options markets adds to volatility. Regulatory frameworks like those discussed on SEC.gov aim to mitigate such risks in formal markets.

Expert Commentary

"The Gangnam incident is a microcosm of unregulated crypto trading risks. While quantitatively insignificant at $4,500, it reflects behavioral patterns where retail FOMO meets operational security failures. Market structure suggests these events cluster during fear-dominated phases when liquidity is thin." — CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Two data-backed technical scenarios emerge from current structure.

• Bullish Invalidation Level: $78,500. Bitcoin must reclaim and hold above the 50-day moving average at this level to confirm any trend reversal. A break above this resistance would fill the recent Fair Value Gap and target $82,000.
• Bearish Invalidation Level: $73,500. This Volume Profile support must hold to prevent a deeper correction. A break below this level would target the next liquidity zone at $70,000 and potentially invalidate the current bull market structure.

The 12-month institutional outlook remains cautiously optimistic despite short-term fear. Historical cycles suggest extreme fear readings often precede significant rallies. The 5-year horizon depends on macroeconomic factors like Fed policy and adoption metrics. This scam incident has negligible impact on that timeline but serves as a risk management case study.