Crypto exchange execs from South Korea were convicted by the South Korean court including the head of cryptocurrency exchange Coinup for fraud; he’s been sentenced 16 years in jail. The company’s vice president was sentenced 11 years in jail, and also eight other executives were given jail time. Let’s read further in the cryptocurrency news today.
What is one of the boldest crypto-related fraudulent schemes in South Korean history, involves the scamming of hundreds of investors out of a total of over USD 386 million as per the Korean court in Seoul found “Cash Kang” (real name Kang Seok-Jung) the CEO of Coinup guilty.
Kang and his accomplices made fake images showing massive overseas data centers, a fake video, and an English language new platform, going so far to Photoshop and distribute a picture of Kang standing next to the South Korean President Moon Jae-In on the cover of a false publication, per Ilyo Seoul, as found in a campaign lead by the South Korean police started in 2018 and ended February of 2019.
Coinup even got mainstream media attention with the organizing of a meeting for potential investors making daring promises for profitable rewards for investors, at the leading convention center in South Korea; the COEX in Seoul, where the event had an estimated 5,000 attendees.
“The victims are also responsible for the scale of the damage. They investing excessively in the hope of obtaining high returns over a very short period of time.”
In the investigation, more than 60 Coinup personnel were arrested by the police. The court sentenced six of the arrested crypto exchange execs and accused besides the CEO and vice president, with jail sentences of six to nine years of prison.
The court heard how Kang and his accomplices used the investors’ money to award themselves a good share of the fund whilst making some investments in bad and worthless crypto. MBC reports that only assets in the worth of USD 258,000 were seized by the police despite the amassing of USD 386 million. The judge presiding the court council said that Coinup’s scam was “highly organized and paid great attention to detail.”
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