AI Buys Instead of Bitcoin for 'High Returns'... 23.8 Billion Fraudster Sentenced to 3 Years in Prison

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] A fraudster who deceived investors by claiming that artificial intelligence (AI) would trade on their behalf and generate high profits, and embezzled 23.8 billion KRW, has been sentenced to prison.

On the 20th, Judge Park So-yeon of the Seoul Eastern District Court Criminal Division 7 sentenced Kim (54), who was indicted on charges including fraud, to three years in prison. Fourteen others indicted alongside him received either prison sentences or suspended prison sentences.

From 2016 to around 2018, Kim deceived investors by claiming that an AI computer program called Airbot connected Bitcoin exchanges in over 120 countries worldwide, buying Bitcoin in countries where prices were low and selling it in countries where prices were high to generate profits. He was indicted on charges of receiving approximately 23.82 billion KRW through a total of 3,961 transactions using this method.

He defrauded investors by promising that investing between 250 and 1,000 USD would yield up to 3,600 USD, or by recruiting other investors and paying a referral commission of 20% of the investment amount in a multi-level marketing scheme.

However, the program they used was unclear in its actual existence, and only a small portion of the invested funds was actually used to purchase Bitcoin.

Judge Park explained the sentencing by stating, "The embezzled amount exceeds 23.8 billion KRW, and the defendant actively led the crime from a central position."

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