South Korean officials recently Sentenced Top executives of cryptocurrency exchange V Global for defrauding investors. Mr Yang and Mr Oh were sentenced to eight years and three years in prison, respectively.
Court documents also revealed that four other unnamed officers received five years’ probation and three years’ sentences. However, three of the six have not yet been imprisoned as they have claimed their innocence to the specific charges and are entitled to legal representation.
Following the latest court action, the number of arrested V Global executives now stands at seven. Earlier, Mr. Li, the CEO of the exchange, was sentenced to 22 years in prison for masterminding the crime.
What was his fault?
According to reports, V Global promised 300% returns to the investors. The exchange, which ran from July 2020 to April 2021, sought that new customers Open an account and deposit an initial amount of around 6 million KRW, with a reportedly guaranteed return of 18 million.
V Global attracted around 50,000 investors in its first year of business by guaranteeing consumers a commission of 12 million.
In a statement, a judge from the 12th Criminal Division of the Suwon District Court said that during his investigation, the defendants interfered with procedures, even destroying evidence to avoid responsibility.
very the victim He reinvested the money he received from his previous investments, so the amount of the loss was less than the legally fraudulent amount.
According to Dagan law firm v Global Invest Legal Council, the majority of the more than 50,000 victims were middle-aged or older citizens looking for a “secure life after retirement”. The law firm has since revealed that at least one victim committed suicide following the scam.
South Korea has been tough on crypto
In September 2021, South Korea Financial Services Commission (FSC) started cracking down On non-compliant local crypto exchanges.
The development caused several on-ramp closures, putting investors at risk of losing more than $2.5 billion in assets.
The South Korean Financial Watchdog and its other affiliates, on September 28, 2022, shed light on There is a need to create an internationally harmonized regulatory framework against cryptocurrencies.
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