A South Korean court sentenced three members of a cryptographic scam ring to prison to deceive investors on 610 million won (around $ 460,000) by promising high yields thanks to cryptocurrency investments.
As Chosun Ilbo, the criminal division of the Busan district court reported, led by judge President Kim Yong-Gyun, announced the verdict on March 30. The court sentenced the group’s leader, Mr. A, who was CEO of an investment company, to 4.5 years in prison. Two other gang members received 3.5 years and 2.5 years of prison sentences, respectively.
The defendants created an investment company in Busan in June 2019, saying that they would select and exchange around 1,000 high -quality virtual currency from around the world. They promised monthly 30% investor yields on their original investments. However, instead of managing the promised funds, the group has diverted money for personal purposes.
The court criticized the defendants for having exploited the lack of knowledge of the victims on the investment of cryptocurrencies. The judge said: “Mr. A and others have committed the crime by taking advantage of the lack of knowledge of the victims on the investment of the parts “, adding that the method and the circumstances of the crime were” very poor “because they mislead investors with false promises.
This case shows the growing question of fraud linked to crypto in South Korea. Earlier this month, prosecutors stopped a better market market in cryptography on accusations related to the scam, and similar cases of fraud continue to increase.
