South Korean court sentences V Global crypto fraud associates to suspended sentences on a massive $1.6B scheme of defrauding 50,000 victims.
The Daejeon District Court of South Korea charged three people who participated in the massive V Global crypto fraud. The fraud scheme cheated 50,000 individuals of an estimated 2.2 trillion won (1.6 billion dollars). It ran from July 2020 to April 2021.
The three co-conspirators were sentenced to three years of prison, with a five-year suspension. They will participate in probation.
The court fined them heavily. One woman was fined 660 million won, another 426 million won, and a man 259 million won.
Massive Losses through Cryptocurrency Fraud.
The court indicated that the defendants had done much harm as they had taken advantage of the interest of the people in crypto assets.
The accused used multi-level marketing, thus occupying the highest ranks in the fraudulent operation.
They made between 700 million and 1.5billion won. The court emphasized the massive financial and emotional sufferings of the victims. It demanded severe punishment due to the huge social harm.
Realistic but Fake Platform
The CEO of V Global was previously sentenced to 25 years in prison for masterminding the fraud. The counterfeit trading resembled actual Korean sites such as Upbit and Bithumb.
It displayed live charts and coin tickers so as to appear authentic. However, its coins did not go to any blockchain. On the platform, the use of advanced multi-level marketing enticed victims.
Fake tokens were provided to members with the promise of payouts of recruiting others. This formed a level system of membership. But these tokens were proved by courts to be worthless.
Continued Repercussions and Lawsuits
Other top managers serve lengthy jail sentences in addition to the CEO. One has a 14-year sentence; another is nearly completing a four-year sentence.
In 2021, the fraud was discovered when the customers were not able to withdraw funds. It was traded in the bustling financial centre of Seoul, where legitimate crypto companies are based.
The court acknowledged that there were victims who got alleged payouts. Yet the total destruction is colossal. The judgment has been made to deter such scams in the future.
The case shows risks of unregulated crypto platforms. Regulators are still cracking down on crypto fraud as more investors become interested.
This sentence makes accomplices who have been making money off of the scams accountable. It sends a strong alert to the scam crypto activities.
Source: https://www.livebitcoinnews.com/korean-court-suspends-jail-for-v-global-crypto-fraud-allies/