CEO of Cryptocurrency Investment Firm Involved in 46 Billion Won Fraud Sentenced to 6 Years in Prison

"300% High Returns Guaranteed Compared to Principal"
Using the Same Trade Name as US-Related Companies

[Asia Economy Reporter Kim Daehyun] The CEO of a cryptocurrency investment company, who was prosecuted for a 46 billion KRW investment fraud involving thousands of investors under the name of a famous cryptocurrency firm in the United States, was sentenced to six years in prison.

According to the legal community on the 22nd, Judge Go Soyeong of the Seoul Central District Court Criminal Division 25 recently handed down this sentence to CEO A of the cryptocurrency consulting and trading company, who was indicted on charges including fraud. Five others, including center managers and IT staff who were also indicted, received prison sentences or suspended prison sentences.

Earlier, A and others were prosecuted on charges of fraud for installing about 50 centers nationwide in Seoul, Daejeon, Jeonju, Pohang, Gwangju, and other locations from April 2017 to March of the following year, deceiving a total of 2,862 people by promising "a high return of 300% compared to the principal," and receiving a total of approximately 46 billion KRW in remittances.

A and others used the same trade name as a cryptocurrency-related company headquartered in Nevada, USA, but it was revealed that these companies and the American company had no relation whatsoever. Investigations showed that they operated the business using a so-called 'Ponzi scheme' method, paying principal and profits to existing investors with new investment funds.

In court, center manager B and others argued that "they received explanations from the CEO and believed it was a legitimate business, so they introduced it to acquaintances without intent to commit fraud or illegal fundraising," but the court did not accept this defense.

The court stated, "Fraud involving illegal fundraising can cause enormous damage to an unspecified large number of victims in a short period, resulting in significant harm to society as a whole," and pointed out, "Although some victims were paid profits or compensation in cryptocurrency, many victims have not been compensated due to the decline in cryptocurrency value."

However, the court added, "Considering that the victims themselves invested without properly researching the investment products, and that the damage was exacerbated by the drop in cryptocurrency value at the time, the sentence was determined by comprehensively considering all sentencing factors."

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