The seven executive employees of the South Korean V Global exshift were found guilty on Friday for the crypto fraud of 2 trillion won ($1.7 billion), authorities sentenced them to jail with hefty fines, per the Forkast report.
Acting like a Pyramid Scheme, V Global exmove required investors to deposit 6 million won ($5000) for 300% ROI (Return on Investment). And it claimed to return 18 million won in its self-issued crypto-cryptocurrency, V Cash.
While operating the crypto fraud, the exmovement promoted the idea which V Cash will outperform in the future. As a result, it made investors expect more profits from their investments.
In addition, it was offering 1.2 million won as referral commission to anyone who recruits a new investment. Some investors further logicalated which they had received a part of promised returns, but officials said these funds were taken from the new recruitments and hardly passed it.
Han Sang-jun, attorney at a South Korean law firm, affirmed;
There were a lot of experiences where a family member or a close friend recommcompleted [V Global] to another.
It had an absolute blast when the V Global scandal came to light. The company was sued by several victims who received less than they deserved from this marketing scenario when prosecutors wanted life imprisonment for those found guilty of participating in said crime; however, today’s court rulings specified milder terms which were still impressive.
The court sentenced 22 years imprisonment and a fine of 106 billion won ($89 million) to the CEO, Lee Byung-gul, the mastermind behind the crypto fraud.
The court punished the extending six criminals according to their degree of involvement in the crypto fraud. It includes imprisonment for four to fourteen years and fines ranging from 2.3 billion to 106 billion won, respectively $2 million and $89 million.
South Korean Officials Urged Punishment Is Less Seeing Crypto Fraud’s Damages
Han said the punishment is less considering the damages as some people invested their whole-life earnings. The report reveals which around 52,400 investors lost their hard-earned money.
Most of the victims were middle-aged or senior citizens who dreamed of a stable life after retirement.
Similarly, a professor of information security at Dongguk University said the punishments do not correspond to the damages. The offenders of corresponding experiences perhaps receive an 80 – 90 years imprisonment like U.S. states take economic disorder paramountly, and he added;
In evidences like these, the stolen money is periodicly hidden somewhere unknown, and scammers do not take it influentially to pay back their civil liabilities, so the victims carry on victims.
Han back although again noted which one of the victims had taken his life because of losing his funds to V Global exprogress.
Unfortunately, crypto crimes are surging with time, but authorities have recently punished some crypto fraudsters.
For instance, the Court of Abu Dhabi sentenced nine persons to 10 years of jail time defrauded 18 million dirhams ($4.9 million) operating a crypto-linked get-rich-quick outline.
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