Bosses of fraudulent South Korean crypto exchange V Global jailed

Bosses of fraudulent South Korean crypto exchange V Global jailed

South Korean authorities appear to have tightened their control over the digital asset sector. Two senior executives named Mr. Yang and Mr. Oh from fraudulent crypto exchange V Global were sentenced to eight and three years, respectively, for their roles in defrauding investors.

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

The shenanigans of V Global

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

According to a local report, the judge of the 12th Criminal Chamber of the Suwon District Court was cited.

"The defendants only trusted the management team of V Global, evaded responsibility, and when the investigation began, they destroyed evidence and interfered in the investigation. The defendants themselves acknowledged and reflected the facts, and many of the victims reinvested the proceeds from their existing investments, so the actual amount of damages was less than the legally defrauded amount."

The victims

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

Prosecutors had said

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

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

Seniors are also targeted by crypto scammers because of their lesser knowledge of the subject.

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