The exchange transactions of bitcoins turned to a South Korean businessman major losses, after he found that he transferred the cash were fake.

According to Agence France-Presse (AFP), residing in Singapore, South Korean businessman, managing its own cryptocurrency firm planned to convert about $2.3 million in bitcoins to EUR 2 million in cash. For this he met with a buyer from Serbia in the French city of nice. After the transaction, the businessman found that the buyer paid him with counterfeit cash. According to AFP, the fake turned out to be “rough photocopy”, which can be easily distinguished from the original.

After the businessman went to the police, the citizen of Serbia was arrested in a five star hotel in Cannes. When it was discovered a watch worth € 100,000 and a luxury car.

According to the lawyer of the detainee, his client is accused of fraud and organized criminal group. Police continue to search for the remaining suspects.

The publication reports that South Korean businessman met with the offender and his associates when they showed interest in investing in the Singapore firm, however, the case ended with an exchange of large amounts of cryptocurrency.

Cases of fraud using counterfeit banknotes in exchange for the digital currency was known before. In April was arrested 12 persons, fraudulently taken possession bitcoins at 190 million yen ($1.8 million), in Tokyo. The attackers offered the victim favorable exchange rate, but most of the submitted bills was also fake.

A week ago it became known about another case of major fraud cryptocurrencies. 22-year-old cryptocurrency millionaire lost more than 5 500 bitcoins he invested in Thai securities, a casino in Macau and cryptocurrency called Dragon Coin. The true nature of the scheme came to light only after the businessman did not see the promised profits, and filed a complaint to the Thai Department for combating crimes.