The seven alleged leaders of VGlobal could receive life sentences. This is a first in South Korean fraud for those in this sector.
KBS reported the seven life sentences that the judge has been asked to issue. Fines of between USD 103.4m and USD 2m were also imposed on the CEO and mastermind, respectively. According to the media outlet, it is rare for financial fraud prosecutors to ask for life sentences. However, such a case would not be common in crypto-related cases.
A mastermind of a financial fraud ring was sentenced to 25-years in 2016 for creating a similar wide-reaching scheme.
The fake exchange appeared to be similar to any other South Korean cryptocurrency trading platform. It featured flashy price tickers for crypto coins such as bitcoin (BTC),, warnings from the government about the dangers of crypto trading, and other meticulously crafted details. The office was located in Suwon, the nation’s unofficial capital of technology. It also provided a facade of authenticity. However, a Suwon District Court branch heard that it was a façade.
Investors and prosecutors have provided evidence to the court. They explained that VGlobal, despite appearing to be a South Korean exchange, was really a multi-level marketing pyramid scam promising investors huge profits for recruiting new members.