Man Sentenced to Three Years for Cryptocurrency Investment Fraud

8 hours ago
Man Sentenced to Three Years for Cryptocurrency Investment Fraud

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, referred to as A, is accused of deceiving victim B into investing a total of 2.934 billion won (approximately $2.2 million) over 324 transactions from December 2021 to August 2023. A falsely claimed that he could guarantee the return of the principal amount along with high interest rates.

Investigations revealed that A posed as a wealthy investor and financial expert in an open chat room to lure B into the scheme. However, A had no significant job or assets and had already lost substantial amounts in previous cryptocurrency investments.

It was found that A misused the funds received from B for personal expenses and to pay off earlier investors, a practice known as 'Ponzi scheme' financing, leading to further financial losses for B.

The court noted that while A had returned some money to B under the guise of interest payments, it was insufficient for full restitution. The court also acknowledged that B's reckless investment decisions contributed to the extent of the losses.

This case highlights the ongoing issues surrounding cryptocurrency scams and the need for stricter regulations to protect investors.

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