The South Korean government appears to have tightened its grip on the digital asset market. For their roles in defrauding investors, two high-ranking executives, named Mr. Yang and Mr. Oh, were sentenced to eight years and three years, respectively.
According to reports, V Global promised investors 300% returns. Initially, new users had to create accounts and deposit approximately 6 million Korean won with a guaranteed 18 million won return. The exchange operated from July 2020 to April 2021.
In one year of operations, V Global managed to attract nearly 50,000 investors by promising users 12 million won in a commission similar to a pyramid scheme. While some executives were nabbed, most employees were under investigation for fraud and violations of the Door-to-Door Sales Act.
Suwon District Court’s 12th Criminal Division judge has been quoted as saying this according to a local report.
“The defendants only trusted the V Global management team, evaded responsibility, and once the investigation began, they destroyed evidence and interfered with the investigation. The defendants acknowledged and reflected on the facts themselves, and many of the victims reinvested the proceeds from their existing investments, so the actual amount of damage was less than the legally defrauded amount”
There are an estimated 52,000 victims. According to Daegun law firm, which represents V Global invest, most of the victims were middle-aged or senior citizens seeking a stable life after retirement, and at least one victim has tragically committed suicide.
