V Global Execs Sentenced to Prison for Fraudulent Crypto Exchange
• Two high-ranking executives of the fraudulent crypto exchange, V Global, were sentenced to eight years and three years, respectively, for their role in defrauding investors.
• V Global lured investors by promising 300% returns and required new users to create accounts and deposit approximately 6 million Korean won initially with a supposedly guaranteed return of 18 million won.
• With the latest arrests, there are now seven V Global execs serving their sentences behind bars.
The South Korean government has recently cracked down on the digital asset space, with two high-ranking execs from the fraudulent crypto exchange, V Global, being sentenced to prison. Mr. Yang and Mr. Oh, the two executives, were sentenced to eight years and three years, respectively, for their actions in defrauding investors.
V Global had been operating since July 2020 until April 2021, during which time they had been luring investors with promises of 300% returns. To join the exchange, users had to create an account and deposit around 6 million Korean won, with the guarantee of 18 million won in return.
It is believed that the V Global exchange had been operating a Ponzi scheme, which involves the use of funds from new investors to pay off other investors and also to fund the exchange’s own operations. This scheme had been in place for a full year, defrauding investors out of a total of 200 billion won.
In addition to the two execs, five other V Global employees were sentenced to prison for their role in the exchange’s fraudulent activities. Currently, there are seven V Global execs serving their sentences behind bars.
The South Korean government is attempting to restore investor confidence in the digital asset space by taking a hard stance against any attempts to defraud investors. This is a positive step in the right direction, and hopefully other countries will follow suit in order to ensure that investors’ funds are kept safe and secure.