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Bosses of rogue South Korean crypto exchange V Global jailed

South Korean authorities seem to have tightened their control over the digital assets space. Two senior executives named Mr. Yang and Mr. Oh were sentenced to eight and three years, respectively, by rogue crypto exchange V Global for their role in defrauding investors.

V Global reportedly lured investors by promising a 300% return. The exchange, which operated between July 2020 and April 2021, required new users to set up accounts and deposit about 6 million Korean won initially, with a reported guaranteed return of 18 million won.

The shenanigans of V Global

During its one-year existence, V Global managed to attract nearly 50,000 investors by promising users 12 million won in a commission akin to a pyramid scheme. Some executives were caught, while most employees were under investigation for violating the Similar Admissions Act Regulation Act, fraud and violating the Doorstep Selling Act.

According to a local report, the judge of the 12th Trial Division of Suwon District Court was quoted.

“The defendants trusted only V Global’s management team, shied away from responsibility, and when the investigation began, they destroyed evidence and interfered with the investigation. The defendants have acknowledged and reflected on the facts for themselves, and many of the victims have reinvested the proceeds from their existing investments, so the actual amount of damages was less than the amount legally cheated.”

The victims

The estimated number of victims is somewhere in the vicinity of 52,000. Law firm Daegun, which represents V Global Investment, previously announced that most of the victims were middle-aged or seniors seeking a “stable life after retirement.” At least one victim died by suicide after being scammed.

The prosecutors had said

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

According to the FBI’s 2021 Elder Fraud Report, seniors over the age of 60 lost over $1.7 billion to fraud last year. That was a 74% increase from 2020. Meanwhile, in 2021, this cohort of individuals lost $239 million from investment schemes alone, including get-rich-quick scams involving digital assets or cryptocurrencies went.

Seniors are also targeted by crypto scammers for their lower level of knowledge on the subject.

Source: Crypto News Deutsch

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