Bosses of Fraudulent South Korean Crypto Exchange V Global Jailed

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South Kore­an author­i­ties appear to have tight­ened their con­trol over the dig­i­tal asset space. As such, two high-rank­ing execs, named Mr.Yang and Mr. Oh of the fraud­u­lent cryp­to exchange, V Glob­al, were sen­tenced to eight years and three years, respec­tive­ly, for their role in defraud­ing investors.

V Glob­al report­ed­ly lured investors by promis­ing 300% returns. The exchange, which oper­at­ed between July 2020 and April 2021, required new users to cre­ate accounts and deposit approx­i­mate­ly 6 mil­lion Kore­an won ini­tial­ly with a sup­pos­ed­ly guar­an­teed return of 18 mil­lion won.

V Global’s Shenanigans

Dur­ing its one year of oper­a­tion, V Glob­al man­aged to rake in near­ly 50,000 investors by promis­ing users 12 mil­lion won in a com­mis­sion sim­i­lar to a pyra­mid scheme. Some exec­u­tives were nabbed while most employ­ees were under inves­ti­ga­tion for vio­lat­ing the Act on the Reg­u­la­tion of Sim­i­lar Recep­tion Act, fraud, and vio­la­tion of the Door-to-Door Sales Act.

Accord­ing to a local report, the judge from the 12th Crim­i­nal Divi­sion of the Suwon Dis­trict Court was quot­ed saying.

“The defen­dants only trust­ed the V Glob­al man­age­ment team, evad­ed respon­si­bil­i­ty, and once the inves­ti­ga­tion began, they destroyed evi­dence and inter­fered with the inves­ti­ga­tion. The defen­dants acknowl­edged and reflect­ed on the facts them­selves, and many of the vic­tims rein­vest­ed the pro­ceeds from their exist­ing invest­ments, so the actu­al amount of dam­age was less than the legal­ly defraud­ed amount”

Victims

The esti­mat­ed vic­tim count stands some­where near 52,000. Dae­gun law firm, which rep­re­sents the V Glob­al invest, rs ear­li­er revealed that most of the vic­tims were mid­dle-aged or senior cit­i­zens who sought a “sta­ble life after retire­ment.” At least one vic­tim has died by sui­cide after being scammed.

The pros­e­cu­tors had said,

“Most of the vic­tims were mid­dle-aged or senior cit­i­zens who dreamed of a sta­ble life after retirement.”

Seniors over 60 lost over $1.7 bil­lion to fraud last year, accord­ing to the FBI’s 2021 Elder Fraud Report. This marked a 74% increase from 2020. Mean­while, this cohort of indi­vid­u­als lost $239 mil­lion in 2021 to invest­ment schemes alone, com­pris­ing get-rich-quick scams involv­ing dig­i­tal assets or cryptocurrencies.

Seniors are also tar­get­ed by cryp­to scam­mers because of their less knowl­edge of the matter.

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