The owner of the crypto currency exchange promoted a pyramid scheme and received 16 years in prison

The top leadership of the South Korean stock exchange Coinup suspected in a fraud scheme with the theft of more than 386 million dollars. The state authorities did everything to catch the General Director of a trading platform. Local news media Yonhap News reported that South Korean court found the suspect Kang Seok Chung guilty and sentenced him to 16 years in prison.

Severe punishment for scum

Chapter Coinup was at the center of a major scandal: he and seven members of senior management Coinup sentenced to prison. Vice-President and another employee of the exchange will stay in places of restriction of liberty of at least 7 and 11 years, respectively. The others will go to jail in the near future. The period of their stay in prison will vary from six to nine years.

Such a severe punishment was assigned to the suspect for the promotion of the investment scheme in which investors were promised 200 percent return on their invested money. Moreover, this result had to wait for 4 to 10 weeks.

They [the defendants] created a believable way, by influencing investors in an organized and accurate. The organization of the chain of crimes, the number of victims and amount of damage worthy of serious punishment.

It is reported that South Korean law enforcement authorities for quite a long time followed the financial pyramid of the exchange. Recently in South Korea declared a war on fraud in the industry of cryptocurrency.

The Police Of Korea. Source: CCN

In making its decision, the court also blamed the investors in the lack of care that made them an easy prey for fraudsters. According to the judge, greed and temptation of frivolous money — that’s the reason why investors continue to fall victim to these sophisticated scams.

In the country has increased the pressure on financial regulators to the cryptocurrency market. Experts note that it’s for the best — trade of crypt turned into a more safe direction.

This is interesting: Scammers try to capitalize on the double cryptocurrency Cardano.

Source: 2Биткоина

In 2018, the police conducted frequent raids on the South Korean cryptocurrency exchanges. Since then, the country has outlawed anonymous trade coins and the banks were obliged to observe the rules of KYC/AML in the exchange of cryptocurrency in South Korea.

Once again: all suggestions about quick earnings with a very high probability are Scam. No traders can not only trade plus coins don't do stable and predictable 200-per-cent jerks, "cheap bitcoins" simply does not exist. By the way, the desire to buy the latest including may lead to robbery — about a similar fraud scheme we wrote in this article. We recommend you read and be careful.

To learn more about the world of cryptocurrencies, simply sign up for our cryptcat millionaires. Also check in Yandex Zen — there are also useful materials.

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