South Korea Crypto Fraudster Sent to Jail For $1.10 Million Scam

A 32-year-old South Korean man, recognized solely as Mr. A, has been sentenced to 5 years in jail for scamming a distinguished broadcast jockey (BJ) from South Korea of roughly $1.10 million in crypto. The arrest was made in accordance with the area’s budding crypto laws.

The case, which has captivated the nation’s consideration, highlights concern over the surge of crypto-related scams within the nation.

Crypto Fraud Escalates in South Korea

Mr. A, who masqueraded as a cryptocurrency knowledgeable, first caught BJ’s consideration by sending star balloons on a number one livestreaming platform, in response to Asia Kyungjae. The BJ, who boasts lots of of 1000’s of subscribers on AfreecaTV, initiated contact with Mr. A in 2021 after sharing his struggles with failed investments on the platform.

Shortly after, Mr. A leveraged the BJ’s curiosity to boast about his 5.1 billion received ($3.80 million) in Bitcoin holdings. He promised BJ returns of two to 4 occasions the funding. Trusting Mr. A’s claims, the BJ transferred 1.5 billion received ($1.10 million) to Mr. A, hoping for profitable returns. Nevertheless, the BJ quickly found the grim actuality of Mr. A’s deceit.

By January 2022, Mr. A had solely returned a fraction of the funding. He solely returned 100 million received ($75,000) whereas equally defrauding one other businessman of 500 million received ($375,100).

Learn extra: How To Identify a Scam Crypto Project

This high-profile sentencing comes amidst a broader clampdown on crypto scams in South Korea, which boasts a strong crypto person base of 9.73 million as of August 2023. The surge in adoption has coincided with a notable rise in fraudulent actions concentrating on unsuspecting buyers.

Latest incidents, together with the police’s warning in opposition to crypto influencer scams in social media “funding studying rooms” and the investigation of several South Korean celebrities for his or her alleged involvement in a crypto fraud scheme, have additional spotlighted the difficulty.

Fraudster Exams New Rules

The case of Mr. A is especially important because it displays the South Korean authorities’ dedication to safeguarding investors. It additionally maintains the integrity of the burgeoning cryptocurrency market.

Furthermore, it aligns with the nation’s stringent Virtual Asset User Protection Act (VAUP). The legal guidelines impose extreme penalties, together with lifetime imprisonment for crypto-related crimes involving positive aspects exceeding $3.7 million. Set to go reside in July, VAUP is one step towards South Korea’s objective of combating fraud and defending buyers.

Learn extra: Crypto Regulation: What Are the Benefits and Drawbacks?

The stringent measures adopted by South Korea, together with the current sentencing of Bitsonic’s CEO Jinwook Shin to seven years in jail for market manipulation, point out a decided method to purge the crypto market of fraudulent actions. These actions goal to discourage potential rug-pull perpetrators and restore belief within the cryptocurrency sector.

Earlier than Mr. A, a number of scams and doubtful schemes tarnished the trade’s popularity.