Three South Koreans were jailed for a 610 million won ($460,000) crypto scam, with the leader sentenced to 4.5 years.
They promised 30% monthly returns from 1,000 cryptocurrencies but stole the money instead. South Korea is cracking down on crypto fraud by arresting scammers and blocking unregistered exchanges.
Scam Took Investors’ Money
A South Korean court has sentenced three people to prison for crypto scam investors out of 610 million won (about $460,000). They tricked people by promising big profits from cryptocurrency investments. According to Chosun Ilbo, the Busan District Court, led by Judge Kim Yong-gyun, announced the decision on March 30. The leader of the scam, Mr. A, who was the CEO of the fake investment company, was sentenced to 4.5 years in jail. His two partners were given 3.5 years and 2.5 years in prison.
The scam started in June 2019 when the group set up an investment company in Busan. They told people they would invest in around 1,000 high-quality cryptocurrencies worldwide and promised them a 30% monthly return. Instead of investing the money, they took it for themselves.
South Korea Takes Action
The court criticized them for taking advantage of people who didn’t understand cryptocurrency investments. Judge Kim said, “Mr. A and others tricked victims who didn’t know much about coin investment,” adding that their actions were “very bad” because they misled people with false promises.
This case is part of a larger crackdown on crypto scam in South Korea. Earlier this month, prosecutors arrested a major crypto market maker for a similar crypto scam. Authorities are also tightening rules, including blocking unregistered crypto exchanges like KuCoin and MEXC from operating in the country.
With crypto scams increasing, South Korean officials are warning people to be careful and do proper research before investing. This court ruling sends a strong message to scammers and shows the country’s commitment to stopping financial fraud in the crypto industry.
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