The latest indictment now brings the number of V Global executives behind bars to seven, with the leader serving 22 years in prison.
Six executives involved in a $1.5 billion (2 trillion won) South Korean fraud at crypto exchange V Global have been sentenced to up to eight years in prison, but three have not yet been arrested so they can plead guilty to some charges in the court.
V Global operates between July 2020 and April 2021, gathering around 50,000 investors with a 300% return guarantee and huge payouts for new customers. According to the version of the December 26 news from South Korean media such as Economist.co.kr, two senior officials, named Mr. Yang and Mr. Oh, gave eight years and three years for their work in scamming investors. The other four leaders, who have not been named, were sentenced to three years and five years in prison.
However, three of them have not been arrested, because they have remained innocent of some charges and have the right to defend them in court. “The defendants only trusted VGlobal’s management staff, evaded duty, and as soon as the investigation began, they destroyed evidence and interfered with the investigation,” the judge said.
However, the judge reportedly granted leniency to the defendants because the actual number of frauds and the number of businessmen involved were lower than previously thought last year. According to Kyeongin’s report from February, this is due to evidence that about 10,000 investors have actually benefited from V Global through payments from promotional incentives such as customer service. Many people are said to have put the profits back on the platform before it was shut down. It was alleged in June of last year that the company had paid the contribution of its customers, which amounted to $ 1,000 for each, to existing investors through the injection of capital by employees new, in a Ponzi way.
The latest indictment brings the number of V Global executives behind bars to seven, with the chairman, known as Mr. Lee, being jailed for 22 years in February.
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