A South Korean court sentenced three crypto scam ring members for defrauding investors out of 610 million won.
Case Details
Busan District Court, led by Presiding Judge Kim Yong-gyun, announced the verdict on March 30. The group's leader, Mr. A, the CEO of an investment company, was sentenced to 4.5 years in prison. Two other members received sentences of 3.5 years and 2.5 years, respectively.
Fraud Setup
The defendants established an investment firm in Busan in June 2019, promising to select and trade about 1,000 high-quality virtual currencies globally, offering investors 30% monthly returns. Instead of managing the funds as promised, the group embezzled the money for personal gain.
Criticism and Consequences
The court criticized the defendants for exploiting the victims’ lack of knowledge about cryptocurrency investments. The judge stated, 'Mr. A and others committed the crime by taking advantage of the victims’ lack of knowledge about coin investment,' adding that the method and circumstances of the crime were 'very poor,' as they misled investors with false promises.
This case highlights the growing issue of crypto-related fraud in South Korea. Recently, prosecutors arrested a top crypto market maker on scam coin-related charges, and reports of similar fraud cases continue to rise.
