A branch of the South Korean High Court has sentenced a convicted crypto scammer to jail for operating a fraudulent token trading platform. The case was heard at the Busan High Court (Ulsan Tribunal) on November 12. The scammer, whose identity remains undisclosed for legal reasons, had initially been sentenced to eight years by a district court in Ulsan. However, the High Court upheld the guilty verdict and increased the jail term after considering additional evidence from prosecutors.
The scammer, referred to as “A” in the media, lured victims by claiming they could generate “x50 profits” by using “crypto market manipulation” techniques. The scam lasted from March to August 2019 and involved a bogus crypto exchange that A promoted on social media platforms. Nearly $1 million was raised from about 90 victims.
A claimed that their platform made use of a sophisticated proprietary software to manipulate crypto prices. Additionally, A attempted to promote a cryptoasset as a means of payment at various establishments.
However, it was revealed in court that A was heavily in debt, amounting to approximately $0.5 million, and was under probation while operating the scam. Prosecutors provided evidence of A’s previous financial fraud charges, with investors in their foreign exchange trading company filing civil fraud cases. A was also found to have “siphoned off” over $1 million from a former employer’s bank account to cover personal expenses and debts.
In another case, A faced a lawsuit from four stock investors for running a deceptive British stock trading platform that promised unrealistic gains.
Crypto scam-related stories have dominated the headlines in South Korea so far this month. Investigators made 25 arrests in a raid on suspected scammers in the city of Daegu, and also swooped on a suspected “international crypto fraud ring.” Public controversy has also been brewing over a recent state visit to Saudi Arabia. Media outlets revealed that a suspected crypto fraudster joined the South Korean delegation’s meeting with top Saudi government officials.
– Presiding judge
