South Korean court sentences masterminds to 14 years for 67 million dollar crypto fraud

On August 19, the Seoul Northern District Court sentenced two masterminds of a crypto fraud scheme to 14 years in prison. Eight individuals were indicted on charges including fraud and violations of the Electronic Financial Transactions Act and the Specified Financial Information Act. The head of the sales organization received an eight-year sentence, while four accomplices were sentenced to prison terms ranging from four to seven years. One individual involved in the quasi-receipt scheme received a one-year prison term, suspended for two years, and was ordered to complete 80 hours of community service. The group created false white papers and business plans by combining existing materials from other companies, recruited individuals to lend their names, and issued nearly 30 coins. When faced with difficulties in listing on overseas exchanges, they manipulated investor apps to falsely show that coins had been delivered and engaged in wash trading to artificially inflate exchange prices.

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