South Korea Busan Court Sentences a Gang Member to 8 Years

• The Busan court sentenced a gang member to 8 years for crypto embezzlement and fraud activities.
• While on the run, he joined a fraud ring and managed laundering operations and gambling links.
• The scheme defrauded 149 victims of 9.7 billion won across 741 transactions over 14 months.

A Busan District Court in South Korea has sentenced a member of an organized crime group to eight years in prison after finding him guilty of seizing crypto assets, participating in an investment fraud scheme, and coordinating money laundering activities while evading trial.

The case centers on a defendant, Mr. Kim, a man in his 30s linked to the Busan-based “Chilseongpa” group, whose actions spanned multiple years and involved both direct financial misconduct and coordination with organized criminals.

The 5th Criminal Division of the Busan District Court, presided over by Judge Kim Hyun-soon, delivered the sentence on March 29. Mr. Kim had been charged with theft of funds under the Act on Aggravated Punishment of Specific Economic Crimes, as well as with fraud.

According to court findings, the case dates back to July 15, 2019, when Mr. Kim received approximately 500 million won (about $332,000) worth of Bitcoin from an individual identified as “A.” The funds were transferred through an intermediary, with an agreement that Mr. Kim would convert the cryptocurrency into cash and return the proceeds after deducting a 0.5% commission.

Instead, the court found that Mr. Kim liquidated the Bitcoin and used the funds for online gambling, failing to return the agreed amount.

Activities Continued While on the Run

During the legal proceedings, Mr. Kim escaped before sentencing. While evading authorities, he became involved in additional criminal activity. In February 2021, he accepted an offer through Telegram to join an investment fraud organization, where he assumed responsibility for overseeing money laundering operations.

The court found that his role included managing three individuals tasked with laundering funds and collecting commissions from the illegal operations. He was also involved in directing these individuals toward illegal gambling platforms.

Fraud Scheme Targeted Multiple Victims

The investment fraud organization used price movements in gold and cryptocurrencies to attract investors. Victims were led to believe they were participating in legitimate opportunities, but the funds were ultimately misappropriated.

Court records show that the organization defrauded 149 victims, with total losses amounting to 9.7 billion won across 741 transactions. The fraudulent activity occurred over approximately 1 year and 2 months.

In its ruling, the court cited the organized nature of the crimes and the extent of financial damage as key factors in determining the sentence. The court also noted that Mr. Kim admitted to most of the charges and voiced regret. However, it considered victim petitions calling for strict punishment when issuing the final sentence.

Related: South Korea Police Track Second Thief Behind $4.8M Loss From South Korea Tax Service