South Korean gets prison time for $ 2 million crypto fraud promising 50% return

South Korean man in his 30s was sentenced to three years in prison due to the cheating of a crypt’s investor of 2.93 billion (approximately 2.04 million dollars).

The Changvon District Court sentenced a man, only identified as a person A, a fraud under an act of worsened sentences of specific economic crimes.

He called as a rich investment expert and lured his sacrifice, he met through an online room, promising to guarantee the principal and provide annual returns from 30 to 50%, toward to the daily news of the Kooky.

Between December 2021. and August 2023. The person received the funds of investors in 324 occasions. He claimed that the money would be used for cryptocurrency investments, but in reality did not have property or employment and has already lost billions in previous cryptological endeavors.

Payments “Interests”

In order to acquire the victim’s trust, a person who renewed part of the funds as “interest” effectively using money in Ponzi-like scheme.

The court noted that even though some funds were returned, the damage cannot be considered recovered due to the circular method of repayment.

The judge monitored by the verdict, Judge Kim Seong-Hvan, said that real profit was far less than the total scam. It is unlikely that the victim will get full restitution.