A South Korean court has sentenced three men convicted of orchestrating a fraudulent cryptocurrency scheme that defrauded investors of approximately 610 million won.
Fraud and Verdict
The three men ran a fraudulent scheme from a building in Busan in June 2019, deceiving investors with promises of 30% monthly returns. They claimed to use an algorithm exploiting market trends, but funds were diverted for personal use, defrauding investors of 610 million won. The ringleader received a four-and-a-half-year prison sentence, while the other two were sentenced to three-and-a-half years and two years and six months, respectively. The presiding judge highlighted the impact of their actions on trust in the financial system, warranting severe condemnation.
Rise of Crypto Investors and New Measures
As of February, South Korea's cryptocurrency investors reached 16.29 million, accounting for about 32% of the population. Amidst growth in investor numbers and fraud cases, the country has implemented new regulatory measures for enhanced oversight.
Joint Investigations and Anti-Fraud Efforts
To enhance efforts against crypto crimes, a joint investigative unit with 35 specialists was established last month by the Seoul Southern District Prosecutors' Office, transforming the former temporary task force into a permanent body in response to rising fraud cases.
The case highlights South Korea's increased scrutiny on cryptocurrency crimes and the need for stringent measures to protect investors.
