The South Korean government has strengthened its grip on the digital asset market. As a result, two high-ranking executives working for the fraudulent cryptocurrency exchange known as V Global, namely Mr Oh and Mr Yang, were jailed for three years and eight years for scamming investors.

According to reports, V Global promised investors returns of 300% on their investments. The exchange, which lasted from July 2020 to April 2021, demanded that new users open accounts and make an initial investment of around 6 million Korean won. In return, they were promised that they would receive 18 million won in return.

South Korean Crypto Exchange Involves in $1.5B Fraud

Six people in charge of the South Korean cryptocurrency exchange V Global’s $1.5 billion scam have been imprisoned. But three of these executives were not arrested, so they may argue against some of the charges in court.

The judge of the 12th Criminal Division of the Suwon District Court said that the defendants only relied on the V Global leadership team, which made it take longer for them to be held accountable. When the investigation started, they tampered with the evidence and intervened in the inquiry. However, according to reports, the judge showed some mercy toward the defendants because the actual extent of the fraud and the variety of investors affected were smaller than what was previously expected last year.

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According to a report by Kyeongin.com that came out in February, this was because new information showed that about 10,000 investors had made money from V Global by using payments from multi-level marketing incentive programs like customer recruitment bonuses. Specifically, the report states that these returns were made through customer recruitment bonuses.

The Company’s CEO, Mr Lee Sentenced to Jail for 22 years in February

Reports say, a number of people put their newly earned money back into the site before it was shut down. In June of the year before, it was thought that the company had paid out its client referral incentives. Each of which was worth $1,000, by using the money from new investors like a Ponzi scheme. The overall number of V Global executives now facing time in jail has increased to seven. This comes after the company’s CEO, Mr Lee, was given a prison sentence of 22 years in February.