Gwangju Gambling Den Posed as Crypto Operation, Police Say

Crypto News Regulation

Written by Aaron S.,

Editor-In-Chief

Last Updated: April 10, 2025

Key Takeaways

A Gwangju office posing as a crypto mining site was found to be running illegal gambling games;
Players paid $38 an hour to play altered mobile games that rewarded them with real cash;
Police seized the equipment and are now investigating whether others were involved in the scheme.

Stop overpaying - start transferring money with Ogvio. Sign up, invite friends & grab Rewards now! 🎁

Gwangju Gambling Den Posed as Crypto Operation, Police Say

BITDEGREE IN YOUR SOCIAL FEED

Police in Gwangju, South Korea, have uncovered an illegal gambling setup hidden behind what looked like a cryptocurrency mining office.

The operation, based in Gwangsan-gu, collected over $95,000 (140 million won) using unapproved gaming machines.

The main suspect, identified only as "Mr. A", is being investigated for breaking the Game Industry Promotion Act. According to police, he set up 50 modified game machines and two kiosks in an office building, presenting the space as a crypto exchange and mining business.

What is the Metaverse? (Meaning + Animated Examples)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

Instead of mining cryptocurrencies, the machines ran a paid version of a free mobile game. Players were charged about $38 (50,000 won) per hour and could earn cash depending on their performance. Authorities believe this was a way to run a gambling system while avoiding detection.

After raiding the location, officers seized the machines and other equipment. The investigation has been expanded to find out if other people helped run the business or were involved in similar setups.

Chief Jeong Gyeong-ho said:

We will actively block illegal gaming centers from reopening or spreading even after being cracked down on.

Another officer added that police will keep working to shut down gambling rooms that hurt the local economy.

Spanish police arrested six people in connection with a large-scale crypto investment scam that used artificial intelligence (AI) tools and fake online promotions. How did the case unfold? Read the full story.