Fraudster Sentenced to Three Years for Cryptocurrency Investment Scam

14 hours ago
Fraudster Sentenced to Three Years for Cryptocurrency Investment Scam

A man in his 30s has been sentenced to three years in prison for defrauding investors by promising annual returns of up to 50% on cryptocurrency investments. The Changwon District Court's Criminal Division 2, presided over by Judge Kim Seong-hwan, announced the ruling on April 5, 2025.

The defendant, identified as A, deceived victim B into investing a total of 2.934 billion won over 324 transactions from December 2021 to August 2023, claiming he would return the principal along with high interest. A approached B under the guise of being a wealthy investor and expert, but investigations revealed he had no significant assets or stable employment and had already lost substantial amounts in cryptocurrency trading.

A misused the funds received from B for personal expenses and to pay off previous investors, a tactic known as 'Ponzi scheme' financing, which ultimately led to further financial losses for B. The court noted that while A had returned some money as interest, it was insufficient for full restitution, and B had requested a severe penalty. However, the court also acknowledged that B's reckless investment decisions contributed to the extent of the losses.

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