A recent ruling by a South Korean court has resulted in the imprisonment of three individuals involved in a cryptocurrency scam ring. The scam ring managed to steal approximately $416,000 from unsuspecting victims as part of their elaborate scheme. The court proceedings took place at the Busan District Court’s Criminal Division, where the ringleader of the operation was sentenced to four and a half years behind bars.
According to reports from the Chosun Ilbo newspaper, the court found all three members of the scam ring guilty of fraud and violating the Act on the Aggravated Punishment of Specific Economic Crimes. The ringleader, who was identified as the CEO of an investment firm, was accused of deceiving victims into believing that they would receive monthly payments equivalent to 30% of their initial investments.
In addition to the ringleader, two other officials involved in the scam were also handed down prison sentences. One official received a three and a half-year sentence, while the other was sentenced to two years and six months. Prosecutors revealed that the trio had established an investment company in a building in Busan back in June 2019.
The scam ring reportedly promised investors that they would trade and manage holdings in around 1,000 high-quality altcoins on their behalf. These altcoins were supposedly hand-picked projects from various countries around the world. Investors were led to believe that they would receive monthly payments equal to 30% of their stakes by keeping their funds on the gang’s platform.
However, instead of fulfilling their promises, the group proceeded to embezzle a total of 610 million won from the unsuspecting investors. The presiding judge during sentencing emphasized that the scam ring took advantage of the victims’ lack of knowledge about cryptocurrency investments. The judge condemned the group’s actions, stating that deceiving investors with false promises about cryptoassets was deplorable.
This recent case adds to the growing list of cryptocurrency-related fraud incidents in South Korea. Earlier this month, a prominent crypto market maker was arrested on charges related to scam coins. Reports indicate an increase in crypto-related fraud cases, with fraudsters posing as regulators to deceive victims. In one instance, a gang of scammers managed to swindle victims out of $22.7 million by requesting payment of USDT 5,000 as “investigation fees.”
As authorities crack down on crypto scams in South Korea, it serves as a reminder for investors to exercise caution and conduct thorough research before engaging in any cryptocurrency investments. Stay informed and vigilant to protect yourself from falling victim to fraudulent schemes in the digital asset space.