The Korean man in his 30s has been sentenced to three years in prison for fraudulent 2.93 billion won (approximately $204 million) of crypto investors.
The Chang Won District Court has found a man guilty of only the fraudster of fraud on the aggravated punishment of certain economic crimes.
According to Kookje Daily News, he posed as a wealthy investment expert, entices victims and met in an online chat room by ensuring patients and committing to providing 30-50% annual revenue.
Between December 2021 and August 2023, I received funds from investors on 324 occasions. He claimed that the money would be used for cryptocurrency investments, but in reality he had no assets or employment and had already lost billions of victories in his previous crypto venture.
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“Interest” payment
To gain the trust of the victim, people repay a portion of their funds as “interest” and use the money effectively in schemes like Ponji.
The court said some funds were returned, but the damage could not be considered recovered due to the roundabout method of repayment.
Judge Kim Sung Hoo Wang, the judge who oversaw the verdict, said the actual profits were far less than the total amount of fraud. It is unlikely that a victim will get a full recovery.
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