A top executive of a crypto exchange in South Korea that defrauded more than 50,000 investors will go to jail.
Four executives of V Global were arrested last June for allegedly defrauding 52,000 investors totaling more than $1.9 billion. The scam came to light as investigators stepped in after a group of disgruntled investors said they were unable to withdraw their tokens from the exchange. Customers announced that they were lured by promises of 300 percent growth in V Global’s initial shares. The judge issued a prison sentence in the long trial, stating that the crime was large and disrupted the financial order.
Imprisonment for Fake Crypto Exchange Manager
The top executive of a crypto exchange that defrauded more than 50,000 investors in South Korea for a total of $1.9 billion will be sentenced to eight years in prison after a court finds him guilty of fraud.
The Suwon District Court Criminal Division sentenced a senior executive of V Global named Yang to eight years in prison. Another executive named Oh was sentenced to three years in prison, while another person named Lee, identified as the CEO of the firm, was sentenced to 25 years in prison in a separate case.
The court also sentenced five others to three years in prison and five years on probation.
Police and prosecutors have been investigating the V Global exchange for nearly two years. While the platform was designed to look like a bona fide crypto trading platform, the court announced that it was actually a cover for a sophisticated multi-layered ponzi scheme.
