- A multi-stage cryptocurrency sales organization that accused of selling hundreds of billions in fake virtual cryptocurrency.
- The firm was handed over to trail upon discovery of its fraudulent nature and has presently awarded a sentence.
- They accused of selling 18,000 of the fake A coins whose total worth was about 26.7 billion won in Hanwha.
A multi-stage cryptocurrency sales organization that accused of selling hundreds of billions in fake virtual cryptocurrency has sentenced at the trial in the first instance. The company was selling cryptocurrencies that could not be exchanged for real money.
The total value of the fraud cryptocurrencies traded expected to be around 26.7 billion wons. The firm was handed over to trail upon discovery of its fraudulent nature and has presently awarded a sentence.
The trial adjudicated by Judge Hong Jun-SEO. The 4th Criminal Justice of the Seoul Central District Court. He sentenced both the accused to seven years imprisonment, which was found guilty of committing fraud.
In addition to this, both the accused, Lee and Kim, were ordered to pay 1.2 billion won and 144 million won respectively.
The court ruled that the accused registered as representative directors of shopping mall ‘B,’ their coin exchange ‘C’ and their self – developed cryptocurrency ‘A Coin.’ This set-up was a part of a multi-stage sales organization designed to sell their cryptocurrency A coin.
The crime was committed between December 2016 to April 2019. They accused of selling 18,000 of the fake A coins whose total worth was about 26.7 billion won in Hanwha. The multi-stage method scam has fooled about 5696 known victims.
The accused promoted A coin about ten times faster than the Bitcoin promotions and claimed to their victims that the crypto coin could be exchanged to dollars, easing euros and even yen.
However, it later revealed that A coin had no original technology and could not exchange money. It created using a source code that copied off the internet.
In their defense, the accused claimed that they were only involved with the shopping mall and coin exchanges of each other. That they did not have any knowledge of the multi-level scam or the development of the A coin.
“They don’t accept the claim because they convinced that they sold A coin in a multi-stage manner,” a source said.
However, on account of organized crime and exploitation of innocent prison, a prison sentence was inevitable.
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