With the most recent arrests, there are now seven V Global executives doing time in prison.
It seems that South Korean authorities have strengthened their grip on the digital asset market. Mr Yang and Mr Oh, both senior executives of the illegal cryptocurrency exchange V Global, were sentenced to eight and three years in prison, respectively, for their part in scamming investors.
Reportedly, V Global enticed investors by offering 300 percent profits. The exchange, which operated between July 2020 and April 2021, required new customers to open accounts and initially invest around 6 million Korean won, with a purportedly certain return of 18 million won.
During its first year of operation, V Global attracted over 50,000 investors by offering a commission structure akin to a pyramid scheme. The majority of workers were under investigation for violations of the Act on the Regulation of Similar Reception Act, fraud, and the Door-to-Door Sales Act, while several executives were arrested.
The judge from the 12th Criminal Division of the Suwon District Court was mentioned in a local news source.
The projected number of victims approaches 52,000. The Daegun legal firm, which represents V Global invest, previously disclosed that the majority of victims were middle-aged or elderly individuals seeking a “secure life after retirement.” At least one victim has committed suicide after being victimized by fraud.
The prosecutor’s office said The majority of victims were middle-aged or elderly individuals who envisioned a secure life after retirement.
According to the FBI’s Elder Fraud Report for 2021, seniors over 60 lost nearly $1.7 billion to fraud in 2021. This was an increase of 74% from 2020. Meanwhile, this generation of adults lost $239 million in 2021 to investment schemes using digital assets or cryptocurrencies, including get-rich-quick schemes.
Seniors are frequently targeted by crypto criminals due to their lack of understanding of the subject.
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