$416,000 Crypto Investment Scam in South Korea Cracked with its Mastermind Sentence 4.5 Years in Prison

A South Korean court recently announced its verdict on a cryptocurrency investment scam in Busan, with the mastermind sentenced to four and a half years in prison. Many of the victims were not even aware of how cryptocurrency investments work.

In June 2019, the criminal gang launched a series of cryptocurrency investment programs, disguising them as seemingly legitimate and risk-free investment opportunities. Their promises of high returns were very attractive to many cryptocurrency investors, and the victims were convinced they had unearthed a great opportunity.

The scammers collected $416,000 by persuading victims to invest in seemingly risk-free cryptocurrency projects with promise of monthly returns up to 30%. The mastermind behind the investment scam was sentenced to four-and-a-half years in prison, while the other two accomplices were sentenced to two-and-a-half and three-and-a-half years in prison, respectively.

However, these scammers never actually participate in real investments with clients’ funds; they just collect money from their clients. When investors want to withdraw their earnings, they fully control these funds, layering with restrictions. Besides, those who received a small portion of earnings were encouraged to reinvest the proceeds into the projects.

South Korean authorities are cracking down on cryptocurrency scams, strengthening investor protection and revitalizing trust in the market. As fraudulent methods have advanced, the difficulty of combating fraud has also increased.

To prevent such financial crimes from occurring in the future, South Korean called for increased awareness and regulation of the cryptocurrency industry.