South Korean police arrest man who sold CatSle character NFT

The Cyber ​​Bureau of the Seoul Metropolitan Police Agency has arrested a 26-year-old man on suspicion of scamming nine investors worth 210 million won ($165,798) in connection with the sale of non-fungible tokens (NFTs) of a character named CatSle.

Since last November, an unnamed suspect has registered 10,000 CatSle NFTs on the OpenSea NFT marketplace, according to police. The CatSle project has stated that it will give away a fixed amount of KLAY cryptocurrency for every 10 NFT purchases. The police said that none of the NFT buyers received a cryptocurrency reward.

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The CatSle project announced that it was hacked and shut down in January after selling 5,000 NFTs to 298 people, generating 270 million won. So far, nine investors have come forward, but according to police, more victims are expected to come forward in the near future. The police also said that they believe the price of NFTs may have been inflated through artificial trading.

CyberBureau is also investigating four other people who helped develop and promote the CatSle NFT. Earlier this year, the South Korean Financial Supervisory Authority announced that it would step up monitoring of new tradable assets such as NFTs.