South Korean Prosecutors Seek Jail Time for Executives in $651 Million Crypto Scam
South Korean prosecutors are aiming to imprison executives involved in a $651 million crypto scam for up to 15 years. The alleged scam left 8,000 individuals out of pocket after they were promised payouts for paying their utility bills using cryptoassets on the OnNetworks platform. However, the firm failed to deliver on these promises, leaving investors unable to retrieve their funds. The CEO of OnNetworks, surnamed Park, faces a 15-year prison term, while an executive named Kim could be sentenced to five years in prison. The CEO of an affiliated company, surnamed Yeom, may face 12 years in jail.
Key Points:
- South Korean prosecutors seek up to 15 years in prison for executives involved in a $651 million crypto scam
- 8,000 investors were left out of pocket after being promised payouts for paying bills with cryptoassets on OnNetworks
- The trial is taking place at the Seoul Southern District Court, with alleged victims calling for punishment
- Executives deny direct involvement in the scam, but acknowledge moral responsibility
- A special crypto crime investigation unit was launched by the Seoul Southern District Prosecutors’ Office last month
Hot Take:
This case highlights the risks and consequences of crypto scams, which can leave unsuspecting investors with significant financial losses. It is crucial for individuals to exercise caution and conduct thorough research before engaging in any crypto-related activities. Regulatory authorities and law enforcement agencies must continue to strengthen their efforts in combating crypto scams to protect innocent investors from falling victim to fraudulent schemes.
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