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Crypto scam It continues to grow in South Korea – Where a fraudster over 60 was jailed for six years for tricking victims into investing in a fake stablecoin.
Segye Ilbo An unnamed man in his 60s – referred to as A for legal reasons – was arrested at the Busan District Court branch on charges of violating the Special Economic Offenders’ Aggravated Punishment Act, it said.
The court heard that between July 2018 and November 2019, A defrauded 35 people out of investments worth thousands of dollars.
A started a company based in Busan and then proceeded to hold “investor briefings” around the city to drum up interest in the firm.
The court heard the sexist claimed:
“We have developed a stablecoin that will be listed on a leading local exchange in August 2019, and buying coins before the listing will allow you to earn more than x10.”
A also claimed that their firm had “developed an ATM” that could “exchange currencies from all over the world”.
South Korean Crypto Scams: Several generations involved
Another recruited his son and brother to join the scam, “taking on roles,” including “bringing in new investors.”
A was able to trick investors into making a total of 158 payments to the firm.
A then proceeded to spend the investors’ funds on real estate investments made “under their own names.” In classic Ponzi fashion, A also used money from newer investors to make payments to earlier-stage investors — helping to create the impression that some of the investments actually paid dividends.
The presiding judge criticized A’s dirty “methods”, calling the crimes “systematic” and “repetitive”.
Earlier this month, three 30-year-old South Korean men were sentenced to prison after setting up a fake cryptocurrency exchange and defrauding them of more than $61,000. The Seoul court heard the trio Rolex duped investors with promises of watches and ethereum (ETH) gifts.
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