- The top executive of a South Korean fake cryptocurrency exchange that defrauded over 50,000 investors out of a total of $1.7 billion will serve an eight-year prison term.
- Scam Crypto Exchange executives guaranteed 300% Profits.
- For over two years, police and prosecutors have been looking into the V Global transaction.
Six executives were convicted to up to eight years in jail for their roles in the $1.5 billion (2 trillion won) South Korean crypto exchange scam V Global.
Both were convicted of cryptocurrency-related fraud offenses. In a separate trial, another man, surnamed Lee and described as the firm’s CEO, was sentenced to 25 years in prison.
Five additional people have been sentenced to three years in prison and five years of probation by the court as well. For over two years, police and prosecutors have been investigating the V Global exchange. Although the platform was designed to seem like a legitimate crypto trading platform, the court heard that it was actually a front for a complex, multi-layered pyramid scam.
Investigators were called in when a group of unhappy investors complained that they were unable to withdraw their tokens from the exchange. Customers said that they were enticed by V Global’s claims of 300% growth on their initial investments.
According to the court, “after the police investigation began,” the executives assisted Lee and “destroyed evidence.” They had also sought to “interfere with the inquiry.
According to the judge, the crime was significant and had “disrupted the financial order.”
Lawyers representing organizations of victims, on the other hand, expressed unhappiness with the ruling. Prosecutors and victim advocacy organizations had pressed for life sentences. Both prosecutors and defendants have the right to appeal, and they may choose to dispute the penalties at the Judicial Branch.