A South Korean crime organization created a fraudulent token and falsely claimed it would be listed to deceive investors, resulting in prison sentences

ChainCatcher news, the Seoul Central District Court's Criminal Division 2 recently sentenced A and B, who were arrested and prosecuted for involvement in a criminal organization and fraud, to 5 years in prison each. C, who participated in the crime, was also sentenced to 2 years and 6 months in prison.

The judge pointed out: "They collaborated with multiple accomplices to systematically carry out fraudulent activities, causing financial losses to the victims." He also stated, "Such criminal behavior has a negative impact on the overall healthy financial order of society and poses a significant threat."

According to investigations, these individuals are suspected of creating fraudulent coins in the Incheon area from June last year to January this year, defrauding a total of about 300 million Korean won (approximately 210,000 USD) in investment funds from 6 victims.

They contacted investors by offering the opportunity to purchase coins at a low price before they were listed. After investors bought a small amount of coins, these individuals impersonated employees of a securities company and contacted the investors again, proposing to buy back the coins at a high price, thus deceiving the victims. After the victims purchased a large amount of coins, these individuals disappeared and relocated their office, continuing their criminal activities.