$1.5B South Korean Crypto Exchange Executives Jailed for Fraud

by | Feb 22, 2024 | Latest News | 0 comments

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While six executives associated with the $1.5 billion (2 trillion won) South Korean cryptocurrency exchange fraud V Global have accepted prison sentences of up to eight years, three executives were not held so they could stand up for themselves against specific charges in court. V Global was in operation between July 2020 and April 2021, drawing the attention of about 50,000 investors by promising 300% profits and sizeable incentives for referring new clients. However, the two senior executives, Mr. Yang, and Mr. Oh acknowledge eight years and three years in prison, respectively, for their roles in cheating investors, according to translations of Dec. South Korean Media, 26 reports outlets like Economist.co.kr. Three-year sentences and Five years of probation were given to four other anonymous executives. However, three of the six total have not yet been confined since they have asserted their innocence linked to specific accusations and have the right to legal representation. The judge from the 12th Criminal Division of the Suwon District Court stated, The defendants solely trusted the global management team, evaded accountability, and once the investigation started, they destroyed evidence and interfered with the investigation. The judge treated the defendants with some mercy, even though the scam’s actual breadth and the number of investors it affected were smaller than initially thought the year prior. This was because, according to Kyeongin’s findings from February, additional evidence suggested that roughly 10,000 investors had earned returns from V Global through payments from multilevel marketing incentives, including customer acquisition bonuses. Numerous others are said to have invested those profits back into the platform before it was shut down. Allegations that the business used the money influx from new clients to pay out its $1,000 client referral bonuses to current investors in a Ponzi-like scam first arose back in June of last year. Seven V Global executives are now imprisoned as a result of the most recent legal action; the CEO, known as Mr. Lee, was subsequently given a 22-year prison term.

$4B Co-creator of the OneCoin fraud enters a guilty plea and is sentenced to 60 years in prison.

In April 2023, the co-founder of the deceptive plan will be punished on charges of wire fraud and money laundering. OneCoin’s co-founder Karl Sebastian Greenwood, who admitted guilt to several counts brought by the US Department of Justice (DOJ), faces up to 60 years in jail. OneCoin is a multi-billion dollar fraud scam involving cryptocurrencies. In a Manhattan federal court, Greenwood pleaded guilty to counts of wire fraud, conspiracy to commit wire fraud, and conspiracy to launder money, each of which carries a maximum penalty of 20 years in prison, according to a DOJ announcement made on December 16. U.S. Attorney Damian Williams claims that Greenwood touted OneCoin as a “Bitcoin killer” even though the tokens were “completely worthless” and that he engaged in one of the biggest global fraud schemes ever. OneCoin, a company that promoted a cryptocurrency by the same name, was founded in Bulgaria by Greenwood and the “Cryptoqueen,” Ruja Ignatova. Emails between the two are said to have made allusions to the business before it was launched in 2014 as a “trashy coin.” It claimed to be a multi-level marketing business where participants could earn commissions by selling cryptocurrency bundles that reportedly featured OneCoin and the chance to mine extra coins. OneCoin can only be changed into fiat money on the exclusive Xcoinx exchange. Since members could enroll others without providing a real product and later participants received payment from earlier participants, it was a pyramid and a Ponzi scam. For the Latest Crypto News follow the Coinography and Subscribe our YouTube channel or follow us on social media platforms like Twitter, Facebook, Instagram and Linkedin.

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