The South Korean court has sentenced an anonymous 43-year-old man to 2 years & 6 months imprisonment for his participation within a $249 Mln cryptocurrency mining scheme.
In line with Yonhap Lee Sang-wook, the judge at the Incheon District Court who made the announcement, the crypto mining scheme still remains under investigation. The indicted was allegedly a secretary of the illegal company from 1st May to 23rd Sep, 2017. No details were however given about the magnitude of his involvement, nor the precise cryptocurrency involved within the fraud.
Police added that he played a lively role by transferring fake statements to victims. Authorities stated that the firm cheated people by promising them 60% of the profits generated by mining activities. It had been later discovered that no such activities existed.
Ponzi Scheme – Raising Red Flags
Prosecutors shared that suspicious activity, like payments to upper investors who attracted lower investors, raised red flags concerning the continued Ponzi scheme.
Judge Lee added:
“It might be a large-scale scam committed against an several number of individuals. We considered that a lot of victims were mass-produced, and therefore the amount of damage caused was astronomical.”
As per a recent official reports, two of the masterminds behind the fraud managed to escape abroad. The secretary is only among the person sentenced as a results of the investigation thus so far.
South Korean authorities recently announced that a complaint was filed by 950 investors who claim to be victims of another crypto-related Ponzi scheme. Police are looking into the alleged scam, referred to as Futurenet.