The leaders of a crypto fraud ring in South Korea, which enticed victims with promises of Rolex watches and Ethereum (ETH) giveaways, have been sentenced to jail.
As reported by Money Today, three individuals faced charges of fraud at a branch of the Seoul Central District Court’s Criminal Division. According to the court, the trio orchestrated a deceptive crypto exchange scheme that defrauded victims of over $61,000.
The masterminds, identified as “A,” “B,” and “C” for legal reasons, were described as being in their 30s. A, the court revealed, initiated the creation of the fake exchange, collaborated with B, and subsequently hired C as a “planning manager.”
C, designated to orchestrate the deceptive tactics, was tasked with creating a public group chat room. Posing as an ordinary individual keen on crypto trading and without disclosing their affiliation with the fraudulent exchange, C posted favorable comments about the bogus platform, strategically enticing investors to visit its website.
C elaborated on the exchange’s strategy, noting that it issued several low-profile yet high-potential coins with promising growth prospects.
Furthermore, the trio devised a fabricated promotional “event.” Investors were enticed with the promise of being entered into a prize draw, where they stood a chance to win “Rolex watches and ETH tokens” by participating in pre-sale events and purchasing the promoted coins.
Crypto Fraudsters’ Favorite Tool: Group Chats
The trio’s claims managed to attract at least six potential investors, resulting in a collective investment exceeding $61,000.
During sentencing, the presiding judge remarked that the defendants “systematically deceived” their victims, ultimately “defrauding them out of money.”
It was reported that A, B, and C have all filed appeals against the verdict.
South Korea is experiencing a surge in crypto-related fraud, with group chats emerging as a favored tool for such schemes. In a recent case, authorities arrested the operators of a $472,000 crypto fraud gang that utilized KakaoTalk’s group chat function to redirect users to a fraudulent platform. The victims ranged from “crypto-curious beginners” to “housewives,” according to police reports.