In a landmark ruling from South Korea’s Busan District Court, three individuals have been sentenced to prison for orchestrating a sophisticated cryptocurrency scam that defrauded investors of 610 million Korean won (approximately $416,000).
The three men, convicted under the Act on the Aggravated Punishment of Specific Economic Crimes, deceived victims with the promise of high returns, claiming they could select 1,000 top-tier cryptocurrencies worldwide and generate monthly profits as high as 30%. However, it was later revealed that the so-called “proprietary trading algorithm” they touted was nothing more than a façade, with the money instead being misappropriated for personal gain.
The ringleader of the scam received a four-and-a-half-year prison sentence, while his two accomplices were sentenced to three-and-a-half and two-and-a-half years, respectively. The judge harshly criticized the group for exploiting the public’s growing interest in cryptocurrencies, pointing out that their actions undermined trust in the financial system. The court emphasized that the severity of their crimes required a firm judicial response.
This case is part of South Korea’s broader efforts to tackle the rise in crypto-related fraud as the country’s crypto market continues to expand. New figures provided by Rep. Cha Gyu-geun of the Rebuilding Korea Party show that by February 2025, 16.29 million South Koreans—almost a third of the population—were involved in crypto investments, up from 14 million in March 2024. This surge in participation also coincided with the increased interest in virtual assets among public officials, with one in five of the 2,047 government workers who filed asset declarations this year admitting to holding cryptocurrencies.
As crypto crime becomes more sophisticated, the South Korean government has ramped up its efforts to tackle the issue. In response to the growing number of fraud cases, the Seoul Southern District Prosecutors’ Office established a dedicated Joint Investigation Unit (JIU) for Virtual Asset Crimes. This 35-member team, consisting of prosecutors and regulators from the Financial Services Commission and the Financial Supervisory Service, was initially formed in 2023 as a temporary task force to combat the rising tide of crypto fraud but has now become a permanent part of the nation’s efforts to secure the digital asset space. Legal experts view this ruling as a stern warning to would-be fraudsters: the legal system in South Korea will not tolerate manipulation in the crypto world.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/south-korea-sentences-crypto-fraudsters-to-prison/