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Crypto News: South Korean Trio Jailed for Crypto Ponzi Scheme Promising 30% Monthly Returns
A South Korean court has handed down prison sentences to three members of a crypto scam ring who deceived investors out of approximately $460,000 by guaranteeing unsustainable monthly returns through cryptocurrency investments.
As reported by Chosun Ilbo, Busan District Court’s Criminal Division 6, led by Presiding Judge Kim Yong-gyun, announced the verdict on March 30. The court sentenced the group’s leader, identified as Mr. A and CEO of an investment company, to a staggering 4.5 years in prison. Two other accomplices received prison sentences of 3.5 years and 2.5 years, respectively.
The defendants founded an investment firm in Busan in June 2019, claiming they would identify and trade around 1,000 high-quality virtual currencies worldwide. The scam artists promised investors a staggering 30% monthly returns on their initial investments. However, instead of managing the funds as advertised, the group embezzled the money for personal gain.
The court criticized the defendants for exploiting the victims’ lack of knowledge about cryptocurrency investments. The judge emphasized that “Mr. A and others committed the crime by taking advantage of the victims’ lack of knowledge about coin investment,” adding that the method and circumstances of the crime were “very poor,” as they misled investors with false promises.
This case highlights 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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Source: https://coinpedia.org/news/crypto-news-south-korean-trio-jailed-for-crypto-ponzi-scheme-promising-30-monthly-returns/
