Friday, January 27, 2023
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HomeNewsBusiness25 years in prison for CEO of V Global’s US$2 billion cryptocurrency...

25 years in prison for CEO of V Global’s US$2 billion cryptocurrency fraud

The Supreme Court of Korea affirmed Lee Byung-conviction gul’s on Friday, and he will now serve 25 years in prison as the CEO of the collapsed bitcoin exchange V Global in South Korea. According to local media, the court affirmed the CEO’s sentence from an appeals court for running a pyramid scam between 2020 and 2021 that duped thousands of investors.

The Supreme Court affirmed the terms of four to 14 years in prison for three additional unnamed V Global officials on the same day, according to the Yonhap News Agency.

The complete identities of the convicted individuals were omitted from the sentence records released to the approved local media, according to a Supreme Court spokesman, citing the need to protect personal information.

After being identified in the conviction by a lower court, Lee’s full name was previously disclosed by Forkast News.

The lower court had concluded that due to the difficulty in determining the precise amount of money V Global had acquired, the illicit earnings from the pyramid scheme would not be confiscated. According to Newsis, the Supreme Court upheld this judgement. When Forkast News contacted the Supreme Court spokeswoman, she declined to comment on this.

According to the court decision, V Global scammed roughly 50,000 investors out of 2.8 trillion Korean won (now equal to US$2.26 billion) between July 2020 and April 2021.

V Global’s self-issued cryptocurrency V Cash offered 300% returns on investments. The exchange required new users to open accounts with a 6 million won ($4,860) deposit and an 18 million won ($18,000) return that was guaranteed. As soon as the exchange was shut down in September 2021, the V Cash token lost all of its value.

In addition, consumers were reportedly guaranteed 1.2 million won in fee by the exchange in exchange for successfully referring another investment. The court found that although some money was refunded to customers, it was done so by deducting it from the deposits of newer users, which is typical of a pyramid scheme.

According to a local media, a district court found seven additional V Global officials guilty of conspiring in the pyramid scam in December and sentenced them to three to eight years in prison.

The Terraform Labs Pte. co-founder and South Korean national Kwon Do-hyung is wanted by South Korean authorities on allegations of fraud and contravening the Capital Markets Law as of the time of the V Global convictions. In May of last year, Kwon’s Terra-Luna stablecoin and cryptocurrency project failed, wiping out billions of dollars and setting off a domino effect of disasters throughout the sector. Do Kwon, who is believed to reside in Serbia and has refuted the accusations against him,

Sam Bankman-Fried, the creator and former CEO of the Bahamas-based FTX trading platform that failed in November, is accused of eight crimes, including wire fraud and conspiring to launder money, in another case involving the failure of an exchange.



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