Mi. Feb 1st, 2023

• The CEO of a fraudulent South Korean crypto exchange, V Global, was found guilty of fraud and will be jailed for 25 years.
• V Global had tricked some 50,000 customers out of a total of $2.3 billion with false promises of 300% growth on initial investments.
• The Supreme Court dismissed an appeal from the CEO, surnamed Lee, and upheld the high court’s guilty verdict.

The South Korean Supreme Court has recently decided that Lee, the CEO of a fraudulent crypto exchange known as V Global, will face a 25-year jail sentence for his part in a $2.3 billion fraud. V Global had tricked some 50,000 customers out of their funds with false promises of 300% growth on their initial investments. The Supreme Court upheld the guilty verdict, which had been previously determined by the high court.

Lee had previously used multi-level marketing tactics to dupe investors at another, now-defunct exchange. V Global had been designed to look like a genuine trading platform, with a website that featured real-time coin tickers. It employed a “tiered membership system” which promised members payouts in the platform’s own tokens for recruiting new members, which turned out to be bogus.

The platform was operational between July 2020 and April 2021. During this time, Lee and other senior executives had been tried for their involvement in the fraud. Senior executives were sentenced to jail terms of between four and 14 years, with the company’s second most powerful executive (after Lee) receiving an eight-year term late in 2022.

The court heard that Lee had taken advantage of the trusting nature of many investors, who had believed in V Global as a legitimate crypto exchange. He had also ignored warnings from colleagues who had raised concerns about the legitimacy of V Global and its operations.

The case of Lee and V Global serves as a reminder of the dangers of investing in unregulated crypto exchanges. It is important that potential investors research any potential exchange before investing, and always remain vigilant to potential scams. In the case of V Global, many investors were unaware of the risks they were taking, and ultimately paid the price.

Von admin