Media: South Korean crypto exchange executives sentenced for fraud

Seven executives of the South Korean cryptocurrency exchange V Global have been sentenced to prison terms for fraud totalling 2 trillion won ($1.7 billion). CoinDesk reports.

According to the publication, the court sentenced former V Global CEO Lee Ben-gyu to 22 years in prison and fined 106.4 billion won ($87.5 million). Authorities allegedly confiscated 10 billion won ($8.4 million) from his exchange account.

The remaining six top managers received four to 14 years in prison and various fines, the media says.

According to Forkast, V Global promised 300% profit on a deposit of 6 million won (about $5,000). This amount was a mandatory condition for registration. In return, the exchange offered 18 million won (over $15,000) in the native token V Cash, and early users were paid for referring new users.

The media, citing the court, reported that more than 50,000 investors were affected by V Global’s actions.

Details of the investigation into V Global emerged in May 2021. Law enforcement conducted searches at 22 locations, including the platform’s Seoul headquarters and employees’ apartments, and froze 240 billion won (~$214 million at the time) in the company’s bank accounts.

In November, journalists learned about the proposal by the Korea Financial Services Commissionto prosecute for misconduct in the cryptocurrency market, including price manipulation and insider trading.

In December, the country’s tax authoritiesinitiated an investigation into Hashed. At the time, it was not specified what exactly the blockchain company was suspected of.

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