South Korean ‘Fraudster Sent to Prison for Operating Bogus Cryptocurrency Exchange’
A South Korean court has sentenced an individual to four years in prison for participating in a fraud scheme involving a fake cryptocurrency exchange. The person, referred to as A for legal reasons, supplied the gang behind the bogus exchange with illegal bank documents using stolen identity data. The court heard that the gang targeted victims who had experienced losses in the stock market. They convinced investors that they could recover their losses by joining a recovery program on the platform, where they would use tokens that ultimately had no value. The illegal bank documents gave the project an air of legitimacy. The judge described A’s role in the scam as severe, and noted that the damages caused were significant. In a separate incident, police recently apprehended a civil servant who allegedly stole $3.5 million from a nursing fund and fled the country, presumably converting the money to cryptocurrency.