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  • ๏ปฟAnjali Belgaumkar
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    Writer by choice, CryptoCurrency Writer, and Researcher by chance. Currently, focusing on financial news and analysis, as well as cryptocurrency news and data. One may not call me a crypto โ€œEnthusiastโ€ but trust me I'm getting there.

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Crypto News: South Korean Trio Jailed for Crypto Ponzi Scheme Promising 30% Monthly Returns

Story Highlights
  • South Korean court sentences crypto scam ring members to prison for deceiving investors out of $460,000 through false crypto promises.

  • The Busan District Court criticized defendants for exploiting victims' lack of crypto knowledge in a growing trend of South Korean fraud cases.

A South Korean court has sentenced three members of a crypto scam ring to prison for deceiving investors out of 610 million won (approximately $460,000) by promising high returns through cryptocurrency investments.

Court Sentences Crypto Scam Ring Members to Prison

As reported by ย Chosun Ilbo, Busan District Courtโ€™s Criminal Division 6, led by Presiding Judge Kim Yong-gyun, announced the verdict on March 30. The court sentenced the groupโ€™s leader, Mr. A, who served as the CEO of an investment company, to 4.5 years in prison. Two other members of the gang received prison sentences of 3.5 years and 2.5 years, respectively.

The defendants established an investment firm in Busan in June 2019, claiming they would select and trade around 1,000 high-quality virtual currencies from across the globe. They promised investors monthly returns of 30% on their original investments. However, instead of managing the funds as promised, the group embezzled the money for personal gain.

Court Criticizes Crypto Fraud and Growing Issue in South Korea

The court criticized the defendants for exploiting the victimsโ€™ lack of knowledge about cryptocurrency investments. The judge stated, โ€œMr. A and others committed the crime by taking advantage of the victimsโ€™ lack of knowledge about coin investment,โ€ย adding that the method and circumstances of the crime were โ€œvery poor,โ€ as they misled investors with false promises.

This case shows the growing issue of crypto-related fraud in South Korea. Earlier this month, prosecutors arrested a top crypto market maker on scam coin-related charges, and reports of similar fraud cases continue to rise.

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