Fraudulent South Korean Crypto Exchange V Global Bosses Sent to Jail

Seven V Global executives are incarcerated and completing their sentences due to the most recent arrests.

The South Korean government has strengthened its grip on the digital asset market. As a result, two senior executives from the fraudulent cryptocurrency exchange V Global, Mr. Yang and Mr. Oh, received sentences of eight years and three years, respectively, for their roles in scamming investors.

According to reports, V Global promised investors 300% returns. The exchange, which lasted from July 2020 to April 2021, demanded that new customers register and deposit an initial 6 million Korean won with the promise of an 18 million return.

V Global’s Shenanigans

V Global attracted close to 50,000 investors during its first year of business by offering customers 12 million won in commissions, akin to a pyramid scam. While most employees were being investigated for fraud, violation of the Door-to-Door Sales Act, and breach of the Act on the Regulation of Similar Reception, several executives were arrested.

A judge from the Suwon District Court’s 12th Criminal Division was cited as stating in a local news article.

“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. 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

An estimated 52,000 victims have been reported. Most victims were middle-aged or elderly people looking for a “stable life after retirement,” according to Daegun Law Firm, which represents V Global Investors. A victim of fraud has at least once committed suicide as a result.

The prosecutor had said,

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

The FBI’s 2021 Elder Fraud Report estimates that seniors over 60 lost more than $1.7 billion to fraud in the previous year. This was an increase from 2020 of 74%. This group lost $239 million in 2021 to investment scams, including get-rich-quick schemes employing cryptocurrencies or digital assets.

Due to their lack of expertise, fraudsters that utilize cryptocurrency also target seniors.