• South Korea recently sentenced two top executives of V Global, a cryptocurrency exchange, to eight and three years in prison for defrauding investors.
• V Global promised investors returns of 300% and asked them to deposit an initial sum of 6 million Korean Won for a supposedly guaranteed return of 18 million.
• Four other unnamed executives were given five years of probation and three-year sentences, while the crime’s mastermind, the exchange’s CEO, Mr. Lee, was sentenced to 22 years in prison.
The South Korean authorities have recently taken strict measures against V Global, a cryptocurrency exchange, by jailing two of its top executives for defrauding investors. Mr.Yang and Mr. Oh were sentenced to eight years and three years in prison, respectively. Court documents also revealed four other unnamed executives who received five years of probation and three-year sentences.
This was not the first time the exchange had been brought to justice. Earlier, the exchange’s CEO, Mr. Lee, was sentenced to 22 years in prison for being the crime’s mastermind. V Global had promised its investors returns of 300%. To entice customers to open accounts, the exchange requested that they deposit an initial sum of about 6 million Korean Won, with a reportedly guaranteed return of 18 million. This offer was too good to be true, and it attracted approximately 50,000 investors within its first year of business.
When the authorities began their investigations, they found that the defendants had interfered with processes and even destroyed evidence to evade responsibility. Many of the victims had reinvested the money they received from their previous investments, which reduced the amount of damage legally defrauded. Most of the victims were middle-aged or older citizens who were seeking a safe investment.
The court of the 12th Criminal Division of the Suwon District Court stated that the defendants had to be punished for their fraudulent actions. They had acted in a way that was not only illegal, but also put the money of many innocent citizens at risk. It is hoped that this sentence will serve as a warning to other exchanges and businesses to follow the law and act responsibly.