South Korean ‘Bogus Crypto Exchange’ Fraudster Jailed

Watch Icon
News
South Korean ‘Bogus Crypto Exchange’ Fraudster Jailed
Source: MemoryMan/Adobe

A South Korean court has sent an individual who provided a bogus crypto exchange with illegal bank documents to prison for four years.

Per Busan Ilbo, Judge Kim Jae-yoon of Changwon District Court sentenced an unnamed individual “in their 30s” following a fraud conviction.

The criminal, referred to in the South Korean media as A for legal reasons, worked with “gang members” on the project.

The court heard that A supplied the gang with bankbooks in the name of third parties using stolen identity data.

The gang, the court heard, created a fake exchange that duped citizens into investing over $112,000 in the platform.

A provided the gang with several bankbooks, as well as official public certificate documentation and one-time passwords (OTPs) linked to company accounts.

The gang members posed as middle managers of their bogus crypto exchange, and the court heard that they targeted “victims who had suffered stock investment losses.”

Changwon District Court, in Changwon, South Korea. (Source: Changwon District Court/Facebook)

S Korean Crypto Scammers ‘Targeted Stock Market Traders Who’d Made Losses’

The fake exchange officials told investors they could recoup their lost funds by joining others in a recovery program.

By using tokens on the platform, investors were told, they would be able to recoup their former losses.

However, the court heard that the coins traded on the platform turned out to have “no substance.”

And the illegal bank documents allowed the gang to give their project a veneer of authenticity, prosecutors explained.

In sentencing, the judge said that A’s guilt was “severe” because the individual had “played an important role” in the scam. Judge Kim concluded:

“The damages are considerable, and [A] does not appear to be truly remorseful for these crimes.”

Earlier this month, police concluded a 16-month manhunt for a civil servant who allegedly stole some $3.5 million from a nursing fund.

Police think the man, surnamed Choi, converted the money to crypto before fleeing the country to live in a “luxury resort in the Philippines.”

The post South Korean ‘Bogus Crypto Exchange’ Fraudster Jailed appeared first on Cryptonews.

 
More News

BitMEX Co-founder Sells Solana for Ethereu...

Watch Icon
Last updated

Source: a video screenshot, Youtube BitMEX co-founder Arthur Hayes says he has sold Solana (SOL) and bought more Ethereum (ETH) despite the recent bullish momentum recorded by SOL.  In a post on X (formerly Twitter), Hayes stated that he had received an inspiration to support Vitalik Buterin’s Ethereum amid the soaring price of SOL. “Fam The post BitMEX Co-founder Sells Solana for Ethereum, Predicts ETH Price to Reach $5,000 appeared first on Cryptonews.

Crypto Companies Fined $5.8 Billion In 202...

Watch Icon
Last updated

Source: Pixabay Crypto companies received more fines for poor money controls than traditional financial firms for the first time ever in 2023, according to data compiled by the Financial Times. In fact, the penalties were hardly comparable. Whereas crypto companies lost $5.8 billion for inadequate customer checks and anti-money laundering controls, their legacy counterparts paid The post Crypto Companies Fined $5.8 Billion In 2023, TradFi Less Than $900 Million appeared first on Cryptonews.

Back to Top