Crypto Scam Nets Millions, Results in Light Punishments
Victims of a South Korean crypto scam are expressing strong dissatisfaction with the punishments handed down to the fraudsters. The perpetrators successfully stole over ₩8 billion, equivalent to approximately $5.4 million, from more than 150 individuals.
Court Hands Down Undersized Sentences
The leaders of the scam have been convicted of fraud and organized crime by a South Korean court. The primary ringleader, referred to as the "team leader," received a sentence of 4 years in prison. A second leader was sentenced to 18 months. These rulings were issued by the Incheon District Court’s Criminal Division 9, under the presiding Judge Jung Jae-min.
In addition to the leaders, 28 other members of the crypto scam network received jail terms ranging from 6 months to 2.5 years. The remaining 11 defendants, including another leader, were given prison time coupled with probation.
The victims have voiced their anger over the perceived leniency of the sentences. Speaking through their legal representative, they conveyed their frustration, as reported by the South Korean newspaper Joongboo Ilbo.
Kim Kyung-nam, the lawyer representing the majority of the scam's 150 victims and the head of For You Law Firm, stated that it is difficult to comprehend the reasoning behind the sentences given to the gang members.
He further emphasized that the victims are still unable to resume normal financial lives due to the impact of these crimes. Mr. Kim specifically criticized the court's decision to grant suspended sentences to some of the defendants.
Judges Defend Leniency Amidst Victim Losses
The court's ruling acknowledged that the two main ringleaders defrauded victims of over $5.4 million. However, according to the court's order, neither of these leaders will face immediate imprisonment provided they do not reoffend in the near future.
Mr. Kim explained that the court imposed a four-year sentence on the "team leader" primarily due to their prior criminal convictions.
The court provided a justification for its sentencing decisions, stating that many of the gang members were not fully aware of the extent of the crimes when they joined the operation. The judge indicated that the court believes the ringleaders coerced them into continuing with the illegal activities once they became aware of their unlawful nature.
The court also noted that a significant number of the defendants confessed to their involvement and were primarily held responsible as accomplices. For legal reasons, the names of the defendants and the specific cryptocurrency tickers involved have been kept confidential.
The criminal activities took place between August 2022 and May 2023, with the group targeting residents in Incheon’s Namdong District.
Prosecutors have stated that the group engaged in repeated fraudulent activities using what are known in South Korea as "scam coins." These are either counterfeit cryptocurrencies or obscure, unlisted altcoins.
According to the prosecution, the group deceived victims into purchasing these worthless coins by promising future sales at inflated prices.
Upon receiving the funds, the perpetrators ceased all contact with the victims and proceeded to launder the stolen money.
Mr. Kim argued that the offenders should have received prison sentences ranging from four to seven years, considering the meticulous planning involved in the crimes.
The prevalence of crypto crime and fraud-related activities is on the rise in South Korea. Data from the country's financial regulators indicates that crypto service providers submitted a total of 36,684 suspicious transaction reports within a brief period from January to August of 2025.
This number of reported suspicious crypto transactions marks a new record and surpasses the total for the past two years combined.