[ad_1]
Lee Byung-gul, chief executive of bankrupt South Korean crypto exchange V Global, faces 25 years in prison after his conviction was upheld by South Korea’s Supreme Court on Friday. Become. A court upheld an appeals court ruling against the CEO, saying he ran a pyramid scheme that defrauded thousands of investors from 2020 to 2021, local media reported.
See related articles: Sam Bankman-Fried pleads not guilty to fraud charges in the collapse of the FTX exchange.
quick facts
- Three other unnamed V Global executives were sentenced to four to 14 years in prison by the Supreme Court on the same day, according to Yonhap news agency.
- A Supreme Court spokesperson said the convicted individual’s full name was redacted in judgment documents provided to authorized local media on the grounds of privacy protection. We reported Lee’s full name after he was named in the court’s conviction.
- A lower court ruled that criminal proceeds from pyramid schemes would not be forfeited, and said it was difficult to determine the exact amount V Global had collected. The Supreme Court upheld the ruling, he reported to Newsis. A spokesman for the Supreme Court declined to comment when contacted by Forkast News.
- V Global defrauded nearly 50,000 investors of KRW 2.8 trillion (currently worth US$2.26 billion) between July 2020 and April 2021, according to a court ruling reported by local media. rice field.
- V Global has promised a 300% return on its investment in its self-issued token V Cash. The exchange requires new members to create an account with his KRW 6 million deposit (USD 4,860) and offers a guaranteed return of KRW 18 million. V Cash tokens become worthless when the exchange closes in September 2021
- The exchange also reportedly promised a commission of KRW 1.2 million if a user successfully referred another investor. Some money was returned to users, but those funds were deducted from new users’ deposits. This was the usual method of pyramid schemes.
- Last December, seven other VGlobal executives were found guilty of a pyramid scheme conspiracy and sentenced to three to eight years in prison by a local court, according to the local newspaper The Economist. They are now appealing the convictions, Yonhap reported.
- V Global’s conviction comes after South Korean prosecutors found Terraform Labs Pte. Kwon’s Terra-Luna stablecoin and crypto project collapsed last May, blowing billions of dollars and setting off a domino chain of failures across the industry. Do Kwon is understood to live in Serbia and denies his charges against him.
- In another case related to an exchange bankruptcy, Sam Bankman-Fried, the founder and former CEO of the Bahamas-based FTX trading platform, which collapsed in November, accused him of wire fraud and money laundering collusion8. facing criminal charges.the lawyer said Forst Bankman-Fried has pleaded not guilty to all charges in US courts.
See related articles: Why is the arrest of Terra-Luna founder Do Kwon more difficult than the arrest of FTX’s Sam Bankman-Fried?
[ad_2]
Source link
