A South Korean court recently handed down prison sentences to three individuals involved in a cryptocurrency investment scam that defrauded investors of approximately $460,000.
The scam took place through a fraudulent investment firm promising high returns on cryptocurrency trades. According to a report from Chosun Ilbo, the Busan District Court’s Criminal Division 6 delivered the sentences on March 30. The group’s leader, identified as Mr. A, received a sentence of 4.5 years in prison, while two accomplices were sentenced to 3.5 and 2.5 years, respectively.
Mr. A had operated as the CEO of the firm, which he founded in 2019 with the claim of offering investment in over 1,000 high-quality cryptocurrencies. The defendants promised investors returns of 30% per month but instead embezzled the funds for personal use.
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The court criticized the trio for taking advantage of investors’ lack of understanding of cryptocurrency, noting that the crime involved manipulation of vulnerable individuals with misleading promises. Judge Kim Yong-gyun expressed disappointment with the severity of the crime, stating that the methods used by the perpetrators were deeply troubling.
This case highlights the growing issue of cryptocurrency fraud in South Korea, as similar scams continue to emerge. Recently, prosecutors arrested a prominent crypto market maker on related charges, signaling an increase in efforts to combat fraud within the crypto space.
