An 26-year-old man was arrested for allegedly defrauding nine investors in a NFT scheme. He is being held responsible for 210 million KRW, or US$165,798, and has now been charged with the crime.

According to reports, the unnamed suspect uploaded 10,000 CatSle NFTs on the OpenSea NFT Marketplace in November 2021. He promised investors that for each ten NFT purchases they made, they would get a set amount of KLAY tokens. None of the NFT purchasers have been rewarded with crypto.

CatSle, which had raised over $160,000 in investors to fund its project, announced it was being hacked. It will be closing down January. Nearly 300 people had purchased 5,000 NFTs.

According to the police, it began receiving a number of reports of “property damage” caused by the CatSle team after unilaterally shutting down the project in January. About nine people have claimed damages so far. There are more likely to be victims in the near future.

Also, the police accused the project for manipulating NFT prices through artificial trading. The cyber bureau translated the following:

This was also confirmed [the general manager]Had prepared for this crime meticulously, like selling his NFT at high prices and turning it in to cash before closing the project.

The project’s four promoters and designers will also face law enforcement.

It is obvious that NFT is an unregulated space. Regulators are now trying to rein in the abuses within the NFT space. Earlier this year, South Korea’s Financial Supervisory Service announced that it would reinforce monitoring of new tradable assets such as NFTs. In the UK, three people were arrested and NFTs confiscated in connection to tax evasion.

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