"You Can Make Six Times the Profit by Buying Coins"... The Fate of a Scammer Who Impersonated an Employee and Took 50 Million Won

Prison Sentences of 8 Months to 2 Years and 6 Months,
with Suspended Sentences of 2 to 4 Years

A group involved in a cryptocurrency investment scam-who deceived victims into investing in fake coins, received funds under the pretense of coin purchase fees, laundered the criminal proceeds, and distributed commissions-has been sentenced to prison.

According to the legal community on January 4, the 12th Criminal Division of the Suwon District Court (Presiding Judge Park Geonchang) sentenced five individuals, including a man in his 30s identified as A, to prison terms ranging from 8 months to 2 years and 6 months, with suspended sentences of 2 to 4 years and probation, on charges including membership and activities in a criminal organization and fraud. Two of them, including A, were also ordered to complete 120 hours of community service.

A and others, who joined the criminal group known as Block Deal, were indicted for impersonating employees of cryptocurrency-related companies in May of last year and deceiving seven people into investing in fake coins with no real value, collecting approximately 50 million won under the pretense of coin purchase fees.

Bitcoin. (This photo is not directly related to the article.) Pixabay Pixabay

They were found to have lied to the victims, claiming, "If you purchase coins at a low price during the event period, you can later make a profit from selling them," and "You can earn more than six times your investment."

It was revealed that A received 50% of the money collected from the victims from the organization and then shared it with other defendants and call center members.

The court stated, "Two of the defendants, including A, communicated directly with higher-level members of the organization, secured the necessary physical equipment for the scam, and actively participated in the criminal organization by directly carrying out fraudulent acts." The court also noted, "However, they admitted to the crimes, confessed, and actively cooperated with the investigation by helping to apprehend accomplices, which was taken into consideration as a favorable factor."

The court continued, "The remaining defendants played roles in directly deceiving an unspecified number of people within the criminal organization." The court added, "However, their admission and confession of the crimes were also taken into account."

Meanwhile, last month, the 4th Criminal Division of the Incheon District Prosecutors' Office (Chief Prosecutor Kim Byeongcheol) indicted 38 people, including a man in his 20s identified as A, who operated a call center and committed a cryptocurrency investment scam worth tens of billions of won, on charges including organizing and joining a criminal group. Prosecutors also brought to trial, without detention, 92 people including a man in his 20s identified as B, on charges of fraud and violating the Act on the Prevention of Loss Caused by Telecommunications Fraud.