Universal Group CEO Sentenced to 5 Years in First Trial for Donskoi Ship Fraud

Court: "Involved in Crime Knowing the Business Was Fraudulent"

[Asia Economy Reporter Yoo Byung-don] Kim, CEO of Universal Group (formerly Shinil Group), who was indicted for participating in the 'Donskoi Ship Fraud Case' involving a scam claiming to have discovered a treasure ship, was sentenced to prison in the first trial.

On the 13th, Judge Choi Yeon-mi of the Seoul Southern District Court Criminal Division 8 stated, "Universal Group's promoted and sold businesses were false, and despite knowing that former Shinil Group CEO Ryu Seung-jin provided false information to investors and embezzled funds from coin sales, he participated in the crime," sentencing him to 5 years in prison and confiscation of deposit claims worth approximately 1.4 billion KRW.

Previously, CEO Kim was indicted on charges of fraud and others for conspiring with former CEO Ryu to embezzle about 11.6 billion KRW through payments for Treasure SL Coin and Universal Coin purchases. The prosecution requested a 7-year prison sentence at the closing trial, stating, "This is a serious case involving planned and organized crimes with numerous victims."

The Donskoi Ship investment fraud case involved issuing and distributing a fake cryptocurrency called Shinil Gold Coin (SGC) in July 2018, claiming to salvage the Donskoi Ship and collecting investment funds.

The main perpetrator, former CEO Ryu, changed the company name from Shinil Group to 'SL Blockchain Group' after the incident and attracted investors by claiming to develop a mine containing 25 trillion KRW worth of gold ore. He then created new cryptocurrencies called 'Treasure SL Coin' and 'Universal Coin' in succession, deceiving investors by promising to share profits from gold mining.

Former CEO Ryu left the country and is currently missing.

This content was produced with the assistance of AI translation services.