Prosecutors Want to Put ‘Bogus’ Crypto Exchange Chiefs Behind Bars for Life in Legal First
The seven alleged ringleaders behind VGlobal, a suspected high-profile South Korean scam crypto exchange that allegedly sucked in some 52,419 investors in South Korea to the tune of USD 2bn, could be handed life sentences, marking a new legal first for fraudsters operating in the sector.
KBS reported that prosecutors have asked the judge to give the seven full life sentences, in addition to fines ranging between USD 103.4m (for the mastermind and CEO) and USD 2m for senior executives. The media outlet added that it is extremely rare for prosecutors in financial fraud cases to request life sentences. Such a case would be even rarer than that, however: It would be without legal precedent in the crypto sector.
In 2016, a conventional financial fraud ring mastermind was sentenced to 25 years for creating a similarly wide-reaching scam.
The allegedly bogus exchange looked ostensibly like any other South Korean crypto trading platform, with a flashy, professional-looking website price tickers for coins like bitcoin (BTC), government warnings about the risks of trading crypto, and other carefully crafted details. A well-staffed office in an affluent area in the nation’s unofficial tech capital, Suwon, also helped provide a veneer of authenticity – but, a branch of the Suwon District Court heard, prosecutors think it was all a front.
The court has heard evidence from investors and prosecutors who explained that behind the pretense of being just another South Korean exchange, VGlobal was actually a multi-level marketing pyramid scam that promised investors outlandish profits for “recruiting” new members to the platform.
Investors were told they would be airdropped the exchange’s own coins every time a new token was listed on the
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