• South Korean authorities recently sentenced top executives of V Global, a cryptocurrency exchange, to prison for defrauding investors.
• V Global promised investors returns of 300% and demanded an initial deposit of 6 million Korean Won for a guaranteed return of 18 million.
• The exchange attracted over 50,000 investors and the majority of them were middle-aged or older citizens.
South Korea recently took legal action against the top executives of V Global, a cryptocurrency exchange, for defrauding investors. Mr. Yang and Mr. Oh were sentenced to eight years and three years in jail respectively, while four other unnamed executives were given five years of probation and three-year sentences. Three of the six have yet to be imprisoned since they asserted their innocence to specific accusations and have the right to legal representation. The exchange’s CEO, Mr. Lee, was sentenced to 22 years in prison for being the mastermind behind the crime.
The court documents revealed that V Global had promised investors returns of 300%, with an initial deposit of 6 million Korean Won guaranteeing a return of 18 million. The exchange ran from July 2020 to April 2021 and attracted approximately 50,000 investors by offering them a commission of 12 million won. The judge of the 12th Criminal Division of the Suwon District Court commented that during their investigations, the defendants interfered with processes, even destroying evidence to evade responsibility.
The majority of the victims were middle-aged or older citizens, many of whom reinvested the money they received from their previous investments, so the amount of damage was lower than the amount legally defrauded. The court action now takes the number of arrested V Global executives to seven, sending a strong message to the cryptocurrency industry in South Korea that such crimes will not be tolerated.