(AsiaGameHub) – Nine South Korean government employees face accusations of promoting a high-profile scam centered on an illegal sports betting platform that promised gamblers “guaranteed profits.”
Law enforcement officials have launched an investigation following a Chuncheon City Hall audit that uncovered evidence the government employees helped defraud hundreds of South Koreans out of a combined total of more than $18.2 million, per South Korean media outlet G1 News.
The group is alleged to have promoted a platform called GM Ball, which claimed to provide bettors with reverse betting options.
In sports betting, a reverse bet — sometimes referred to as an action reverse — is a wager that connects two or more separate bets. Placing these bets lets bettors essentially wager on both sides of a team sports contest, so long as they put up twice the standard stake.
South Korean Government Employees Recruited Scam Site Victims
Law enforcement has been investigating the platform’s suspected operator for multiple weeks and has since taken the site offline.
Investigators noted that the operators “inflated their membership counts” by “promising high returns.” They told gamblers they could earn additional income by referring new users to the platform.
According to law enforcement, the site was actually a Ponzi-style scam. A police spokesperson confirmed that more than 800 victims have been identified across the country.
Four of the site’s alleged ringleaders fled to Thailand, but police later repatriated all of the suspects back to South Korea.
Chuncheon is the most populous city in South Korea’s Gangwon Province.
Auditors reported that several victims have been identified in Gangwon, adding that their probe “confirmed that Chuncheon City officials also used the platform to place wagers.”
Auditors stated that all nine city employees used the platform, with an unspecified number of the accused also “serving as local recruiters.”
These employees “signed up citizens and fellow government workers,” with some being given high-end smartwatches as an incentive. At least one of the civil servants placed bets totaling nearly $6,800 on GM Ball.
One of the accused individuals told investigators, “The operators threatened to freeze our funds, so we began recruiting people we knew.”
Law Enforcement Investigation Remains Ongoing
Chuncheon City Hall has imposed disciplinary measures against its government employees.
Three have received salary reductions, five have been officially reprimanded, and a single employee has been given a formal written warning.
This situation may not be fully resolved, however, as law enforcement is pursuing a separate ongoing investigation.
The vast majority of online sports betting activities are illegal in South Korea, with the only exceptions being state-run horse racing platforms and Sports Toto.
The latter service provides sports pool-style betting, with a daily limit of 100,000 won (roughly $70).
Over the past several months, South Korean media outlets have shared reports that dozens of teenagers are using stolen identification cards to place bets on Sports Toto.
Many of these teens report that they have developed a “dependency” on sports betting.
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