Crypto coin frauder convicted by South Korean authorities


A South Korean court sentenced a 43-year-old man, without disclosing his name, to two years and six months in prison for his involvement in a $249 million crypto-mining scheme.

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According to Yonhap Lee Sang-wook, the Incheon District Court judge who made the Bitcoin Rejoin announcement, the crypto-mining pyramid scheme is still under investigation. The accused is alleged to have been the secretary of the illicit company from May 1 to September 23, 2017. No details have been given about the extent of his involvement, nor about the specific cryptomonies involved in the fraud.

The police said the subject was actively involved in sending false statements to the victims. Authorities stated that the company misled people by promising them 60% of the profits generated by mining activities. It was later discovered that no such activities existed.

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Signs of a Ponzi scheme
Prosecutors reported that suspicious activities, such as payments to top investors that attracted bottom ones, raised alarms about the current Ponzi scheme.

Judge Lee testified:

„It’s a large-scale scam committed against an undetermined number of people. We believe that many victims were mass-produced, and the amount of damage was astronomical.

According to the latest reports, two of the masterminds of the fraud managed to flee abroad. The secretary is so far the only person convicted as a result of the investigation.

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South Korean authorities recently announced that a complaint had been filed by 950 investors claiming to be victims of another crypto-money-related Ponzi scheme. Police are investigating the alleged scam, known as the Futurenet.

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