Fraudster Sentenced to Three Years for Cryptocurrency Scam

A man in his 30s has been sentenced to three years in prison for defrauding investors by promising 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 verdict on April 5, 2025.
The defendant, identified as A, deceived victim B between December 2021 and August 2023, claiming he would return the principal amount along with annual interest of up to 50%. He managed to swindle a total of 2.934 billion won (approximately $2.2 million) from B through 324 transactions.
A approached B under the guise of a wealthy investor and financial expert, having met in an open chat room. However, he had no significant job or assets and had already lost substantial amounts in cryptocurrency investments himself.
It was revealed that A used the funds he received from B for personal expenses and to pay off previous investors in a classic Ponzi scheme fashion, ultimately leading to greater 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. The court also acknowledged that B's reckless investment decisions contributed to the extent of the losses.