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crypto fraud continues to grow in South Korea Where a scammer over the age of 60 has been sentenced to six years in prison for tricking victims into investing in counterfeit stablecoins.
sege elbow reported that an unidentified man in his sixties – designated as A for legal reasons – was imprisoned in a branch of the Busan District Court for violating the Act on the Severe Punishment of Special Economic Offenders was.
The court heard that A had committed an elaborate scam from July 2018 to November 2019, defrauding 35 persons out of investments of thousands of USD.
A formed a company based in the city of Busan, and then proceeded to hold “investor briefing sessions” around the city to increase interest in the firm.
The court heard that SexGeneration claimed:
“We have developed a stablecoin that will be listed on a major domestic exchange in August 2019, and buying the coin before it is listed will give you a profit of more than x10.”
A also claimed that his firm had “developed an ATM” that was “capable of exchanging currencies from around the world.”
South Korean crypto scammers: several generations involved
One recruited his son and brother to be involved in the scandal, “taking roles” that involved “recruiting new investors”.
A was able to trick the investors into making a total payment of 158 to the firm.
A then proceeded to spend the investors’ money on real estate investments made “under his own personal name”. In classic Ponzi style, A also used new investors’ money to issue payments to first-stage investors – helping to create the impression that some investments were actually paying dividends.
The presiding judge criticized A’s nefarious “methods”, calling the crimes “systematic” and “repeated”.
Earlier this month, three South Korean men in their 30s who founded a fake crypto exchange and defrauded victims of more than $61,000 were sentenced to prison. Seoul’s court heard the trio Investors cheated by promises of Rolex watches And Ethereum (ETH) Cheap.