"Bitcoin 12 Billion Won, Invest" They Said... Actual Balance Only 5 Won

Embezzled 1.7 Billion Won from Friends and Acquaintances
Investment Funds Used for Debt Repayment and 'Ponzi Scheme'

A man in his 30s who forged his account balance to solicit investments in cryptocurrencies such as Bitcoin from friends and others, thereby embezzling billions of won, has been brought to trial.

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On the 11th, the Criminal Division 1 of the Ansan Branch of Suwon District Prosecutors' Office (Chief Prosecutor Jo Hee-young) announced that Mr. A was arrested and indicted on charges of violating the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (fraud).

Mr. A is accused of embezzling approximately 1.7 billion won in total, including 340 million won and 490 million won respectively from two friends, Mr. B and another, and 820 million won from an acquaintance, Mr. C, from October 2018 to October last year.

It was confirmed that Mr. A forged documents to make it appear as if he held 12 billion won worth of Bitcoin in an account at a U.S. cryptocurrency exchange, and showed this to victims to solicit investments.

In fact, Mr. A reportedly claimed during the police investigation that he actually had Bitcoin holdings in the exchange. The police, having no way to verify this at the time, forwarded the case without detention.

Subsequently, the prosecution obtained a search warrant from the court for the exchange and analyzed Mr. A’s account. As a result, Mr. A’s Bitcoin balance was found to be only '5 won.'

Additionally, it was investigated that Mr. A used most of the money received from the three victims, including Mr. B, to repay debts owed to other investors, a so-called 'Ponzi scheme' method.

Accordingly, based on the results of the exchange search and other evidence, the prosecution judged that Mr. A’s crime was serious as he solicited investments with fraudulent intent from the outset, and directly detained him.

A prosecution official stated, "The prosecutor in charge actively handled the case by contacting exchange officials multiple times via email to seek cooperation for the search and investigation," and added, "We will ensure that Mr. A receives a sentence commensurate with his guilt."

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