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- South Korean court jails three for running a fake crypto firm that stole over $460,000 from investors.
- The group promised 30% monthly returns but diverted the money for personal use, court documents revealed.
- Judge Kim Yong-gyun criticized the scammers for exploiting victims’ lack of crypto investment knowledge.
Judicial officials in South Korea punished three group members from a fraudulent cryptocurrency investment operation with prison sentences after their scheme victimized investors for $460K. The criminal group obtained 610 million worth of funds through their fake cryptocurrency investment operation, which amounted to $460,000.
The Busan District Criminal Division 6 ruled on March 30 against the perpetrator group. Judge Kim Yong-gyun handled this case as the presiding authority to deliver final prison terms against three defendants.
Mr. A, identified as the head of the group and CEO of the fake investment firm, received a sentence of 4.5 years. The other two participants in the scheme received prison terms of 3.5 years and 2.5 years, respectively.
The group launched the investment firm in Busan in June 2019, claiming to invest in nearly 1,000 profitable virtual currencies worldwide.
The investment scheme offered 30 percent monthly profit returns to all investors. The organization diverted its collected funds into personal expenditures instead of using them to manage assets according to its promises.
Judge Kim specified that the group selected vulnerable people who did not understand cryptocurrencies. He designed the operation to manipulate investors through deceitful tactics that exceeded all ethical limits.
Authorities Warn of Growing Crypto Scams in South Korea
According to Chosun Ilbo, the court emphasized that this case reflects a wider problem. Crypto-related frauds have increased across South Korea in recent months.
A leading virtual currency trading professional received arrest charges from investigators for his involvement in manipulating scam digital assets. The investigations of electronic asset officials target multiple related incidents because they aim to protect digital market security.
Risk awareness exists among authorities to prevent people from joining crypto-related business ventures. National regulators dedicate their resources to building defensive systems that protect people against money loss in phishing operations.
The court decision demonstrates that investors require better risk education and highlights the importance of strong oversight for digital investment companies. The court action is a warning system that protects the growing cryptocurrency market from unlawful operators.
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