- V Global was in business from July 2020 to April 2021.
- It attracted over 50,000 investors by offering returns of 300% and large bonuses.
A total of six executives were sentenced to up to eight years in jail. For their roles in the $1.5 billion (2 trillion won) V Global crypto exchange scam in South Korea. While three were not held so they could dispute specific allegations in court.
V Global was in business from July 2020 to April 2021. During which time it attracted over 50,000 investors by offering returns of 300% and large bonuses for introducing new clients.
Reports from South Korean media sites, such as Economist.co.kr, said on December 26 that two high-ranking executives, Mr.Yang, and Mr.Oh, were sentenced to eight years and three years in prison, respectively, for their roles in a scheme to swindle investors.
Destroyed Evidence and Interfered with Investigation
There were four more executives who were not identified and were given three-year imprisonment and five-year probation terms. However, three of the total six have not yet been held since they are contesting their arrest and presumed innocence.
The judge from the 12th Criminal Division of the Suwon District Court stated:
“The defendants only trusted the VGlobal management team, evaded responsibility, and once the investigation began, they destroyed evidence and interfered with the investigation.”
The court reportedly showed some mercy toward the offenders, however, since the real amount of fraud and the number of affected investors was smaller than first estimated last year.
Later evidence showed that about 10,000 investors had gained returns from V Global via payments from multilevel marketing incentives including customer recruiting bonuses, according to a report by Kyeongin from February. It is speculated that many users re-invested their earnings into the platform shortly before its closure.
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