The property of the organizers of the South Korean cryptocurrency project V Global will be confiscated to compensate for the losses of 52,419 users of the exchange.
Seven V Global executives charged with misappropriation of almost $1.9 billion
were recognized guilty. Former CEO Lee Byung-gul has been sentenced to 22 years in prison. Six other accomplices in the fraud received between four and fourteen years, depending on the extent of their involvement.
In January 2022, prosecutors demanded life imprisonment for the former executives of the cryptocurrency company V Global. Han Sang-jun, a lawyer at Daegun law firm representing the V Global investor group, said 52,419 users were victims of the scam. They lost money on the V Global exchange, some of them life savings.
“Most of the victims were middle-aged or older people who dreamed of a stable life after retirement.”
Khan added that one of the victims of the scam committed suicide when she lost all her money. The investigation found that V Global was attracting investors with a 300% guarantee on a deposit of 6 million won (about $5,000). Placing this amount on the platform was the minimum condition for participation in the project.
The first investors did receive part of the promised income, but the prosecutor’s office said that the money was taken from the deposits of new customers, that is, the exchange was a classic pyramid scheme. The lawyer added that the administration of the exchange attracted investors by speaking on online forums. An important role in gaining investor confidence was played by the presence of a working cryptocurrency exchange. The main organizer of V Global has been sentenced to the highest penalty in the South Korean legal system for crimes against property. However, Khan believes that the verdict does not match the amount of damages.
“I’m not sure if there will be another case [такое грандиозное]but I think this verdict will be an important guideline.”
Khan said that even after the administration of the exchange has served their term, their civil obligations will remain in force, and most of the losses will be reimbursed after the confiscation of the property of V Global operators.
Last year, the South Korean authorities accused the V Global platform of creating a cryptocurrency pyramid and defrauding more than 40,000 users. The police confiscated about $214 million from the organizers of the scam. Earlier, the South African police received several statements from citizens who lost money in the AfriCrypt pyramid. Law enforcement agencies have launched an investigation into the activities of the platform.
Source: Bits
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