The trial of a suspected crypto fraudster has commenced in Gwangju, South Korea. The defendant, an individual named Tak, is accused of defrauding 13 victims out of approximately $2.1 million. Prosecutors claim that Tak deceived investors by falsely presenting an art-themed altcoin and NFTs as investment opportunities.
Fraudulent Activities and Deception
According to Munhwa Ilbo, Tak allegedly received and stole $318,000 from investors who believed they were backing the purchase of a crypto trading firm. Furthermore, Tak raised funds by falsely promising investors “proxy investments in Ethereum (ETH).” Investigators discovered that Tak posed as a competent crypto investor who had earned significant profits from coin trading.
Prosecution officials stated: “Tak deceived potential investors with promises of high returns and guaranteed stake returns through the investment in unlisted stocks. Additionally, Tak claimed that investors would profit from altcoins tied to NFT artworks.”
Between 2021 and 2022, during the peak of the NFT boom, Tak approached prospective investors. Prosecutors also revealed that Tak attempted to obstruct the police investigation by enlisting the help of a legal broker named Seong. Tak paid Seong over $830,000 in an effort to halt the inquiry.
Tak’s Plea and Future Proceedings
During the trial, Tak denied any wrongdoing and claimed that the payment made to Seong was a legitimate transaction. Tak pleaded for clemency and awaits the court’s decision. The proceedings are set to continue on January 8.
It is worth noting that last week, the highest financial regulator in the country ruled that most NFTs do not fall under crypto-related laws and regulations. Additionally, lawmakers announced their intention to create legislation that distinguishes central bank digital currencies (CBDCs) and other assets from fungible cryptoassets like Bitcoin (BTC).
