"Double Your Principal and Daily Dividends": Cryptocurrency Fraudster Sentenced to 20 Years for Defrauding 11 Billion Won

Five Accomplices Also Sentenced to Prison Terms Ranging from Six Months to Two Years and Six Months

On April 14, the first criminal trial for former President Yoon Seok-yeol's charge of rebellion is being held under tight control at the Seoul Central District Court. Since the night of April 11 until midnight on the same day, the court has strengthened security within the building by prohibiting the entry and exit of all vehicles except those for essential duties. April 14, 2025 Photo by Joint Press Corps

A man in his 50s, identified as Mr. A, has been sentenced to a prison term after being found guilty of defrauding more than 370 people out of over 11 billion won by falsely promising to double their principal and pay daily dividends if they invested in listed cryptocurrencies.

On June 10, the 29th Criminal Division of the Seoul Central District Court (Presiding Judge Eom Gipyo) sentenced Mr. A, who was indicted on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, as well as fraud and violation of the Act on Regulation of Receiving Financial Funds, to a total of 20 years in prison and ordered the forfeiture of approximately 7.62 billion won. Five accomplices who were indicted alongside him were each sentenced to prison terms ranging from six months to two years and six months.

The court stated, "Mr. A's business focused on encouraging lower-tier investors to join in order to provide profits to higher-tier investors. If new investments are not continuously brought in, the losses ultimately fall on the lower-tier investors, and the amount of damage increases rapidly. He operated the investment funds in a Ponzi-like manner and was fully aware of this structure, yet did not inform the investors."

The court further emphasized that most of the victims were ordinary citizens, including many elderly people, stating, "Not only did they lose the wealth they had accumulated over a long period, but they also found themselves heavily in debt, and some are suffering from guilt for having involved their family and acquaintances in the scam."

Mr. A served as the chairman of organizations such as LF Foundation, PS Foundation, and PLT Holdings, which were involved in issuing cryptocurrencies. He attracted investment funds from victims by making promises of unrealistically high returns.

Mr. A promised, for example, "I will pay daily returns equivalent to 2% of the principal and 3% in coins." However, investigations revealed that the actual payouts were made using funds from new investors, in a Ponzi scheme arrangement.

The court determined that Mr. A defrauded a total of 374 people out of more than 11 billion won and illegally solicited over 55 billion won in a similar fashion. Illegal solicitation refers to the criminal act of raising funds from an unspecified number of people by promising principal protection without proper authorization, registration, or reporting.

This content was produced with the assistance of AI translation services.