South Korean Court Sentences 3 Crypto Scam Ring Members to Prison for Deceiving Investors Out of 610 Million Won

A South Korean court has sentenced three members of a crypto scam ring to prison for deceiving investors out of 610 million won (approximately $460000)

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

Busan District Court’s Criminal Division 6, led by Presiding Judge Kim Yong-gyun, announced the verdict on March 30, as reported by local news outlet Chosun Ilbo.

The court sentenced the group’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, the group did not manage the funds as promised and instead embezzled the money for personal use.

The court noted that the defendants’ actions were particularly egregious due to the victims’ lack of knowledge about cryptocurrency investments, which made them easy targets for the scammers.

“Mr. A and others committed the crime by taking advantage of the victims’ lack of knowledge about coin investment,” Judge Kim said.

He added that the method and circumstances of the crime were “very poor” as they deceived investors with false promises.

This case highlights the growing problem of crypto-related fraud in South Korea. Earlier this month, prosecutors arrested a top crypto market maker on scam coin-related charges.