Crypto Fraud in South Korea for $1.5 billion
2022.12.28 01:06
Crypto Fraud in South Korea for $1.5 billion
Budrigannews.com – Six executives in the $1.5 billion (2 trillion won) South Korean crypto exchange fraud known as V Global have been sentenced to up to eight years in prison; however, three of them were not detained so that they could defend themselves in court against specific charges.
Between July 2020 and April 2021, V Global lured approximately 50,000 investors with promises of 300% returns and substantial compensation for referring new customers.
A translation of reports from South Korean media outlets like Economist.co.kr from December 26 states that two high-ranking executives named Mr. For their part in defrauding investors, Yang and Mr. Oh were each sentenced to eight years and three years in prison.
Four additional unidentified executives were given three-year prison terms and five years of probation.
However, three of the total six have not yet been arrested because they have asserted their innocence of certain charges and are entitled to self-defence in court.
“The respondents just believed the VGlobal supervisory crew, dodged liability, and when the examination started, they annihilated proof and slowed down the examination,” said the appointed authority from the twelfth Criminal Division of the Suwon Region Court.
However, due to the fact that the actual amount of fraud and the number of investors affected were lower than initially thought last year, it was reported that the judge granted the defendants some leeway.
This was due, as Kyeongin reported in February, to evidence that approximately 10,000 investors had actually received payments from multilevel marketing incentives like customer recruitment bonuses from V Global. Before the platform was taken down, many are said to have reinvested those profits.
More Arrests in crypto industry continue
In June of last year, it was alleged that the company had paid out its customer referral bonuses, which were said to be worth $1,000 each, to existing investors through the infusion of capital from new users in a manner that resembled a Ponzi scheme.
The CEO of V Global, also known as Mr. Lee, was given a 22-year prison sentence in February, bringing the total number of executives imprisoned by the company to seven at the time of the most recent court action.
