V Global CEO Sentenced to 25 Years in Prison for $2.3B Crypto Fraud
• The CEO of a bogus South Korean crypto exchange, V Global, has been found guilty of fraud and sentenced to 25 years in prison.
• The exchange had promised members payouts in its own tokens for recruiting new members, but these coins were found to be bogus.
• Other senior executives were also jailed for between four and fourteen years.
The CEO of a fraudulent South Korean cryptocurrency exchange, V Global, has been sentenced to 25 years in prison for defrauding customers out of a staggering $2.3 billion.
The Supreme Court dismissed an appeal from the CEO, surnamed Lee, and upheld the high court’s guilty verdict. The court heard that Lee had previously used crypto-themed multi-level marketing tactics to dupe investors at another, now-defunct exchange.
The V Global exchange operated between July 2020 and April 2021 and promised customers a 300% return on their initial investments. However, it was soon discovered that the exchange was using a ‘tiered membership system’ that gave investors payouts in the platform’s own tokens for recruiting new members. Unfortunately, these tokens were found to be bogus.
When angry investors began to complain that they were unable to withdraw tokens or fiat from the platform, the authorities stepped in and launched an investigation. After the investigation concluded, Lee and a number of other senior executives were tried and sentenced. The other senior executives were given jail sentences ranging from four to fourteen years.
Lee, the mastermind behind V Global, was sentenced to the longest prison sentence of all. The court found him guilty of fraud and sentenced him to 25 years in jail.
The case is a clear demonstration of the dangers of investing in fraudulent cryptocurrency exchanges. It is important for investors to do their due diligence in order to determine if an exchange is legitimate and secure, or a scam. Unfortunately, the investors of V Global have had to learn this lesson the hard way.