Over 1,000 Victims... Organization Behind Virtual Asset Scam Goes to Trial

An organization that committed fraud through methods such as manipulating the market prices of virtual assets (cryptocurrency) has been brought to trial. It is reported that a lawyer is among those indicted.

According to the industry on the 10th, the Criminal Division 1 of the Seoul Northern District Prosecutors' Office (Chief Prosecutor Lim Yoo-kyung) indicted 12 people, including the leader Mr. A (37), on charges of organizing a criminal group and fraud on the 7th. Among them, six have been detained and brought to trial.

They are accused of plotting a virtual asset scam, dividing roles into a leader, coin issuance team, coin sales team, and money laundering team, and defrauding 11.6 billion KRW from 1,036 victims over about three months from May 2022 through methods such as market manipulation.

The investigation revealed that they issued Scam Coins and manipulated prices after listing them on overseas exchanges. Additionally, they deceived investors by operating leading rooms and publishing false white papers to sell virtual assets.

During the process, they imposed a 90-day sales ban period, known as 'lock-up,' preventing victims from trading while selling virtual assets, causing significant damage to investors.

Meanwhile, the prosecution confirmed that lawyer Mr. B (45), who posed as a coin expert through YouTube, played a leading role in the criminal group by recruiting a money laundering member from among the clients and leading the laundering of approximately 10 billion KRW in coin sales funds, as well as being involved in drafting false contracts to prepare for future investigations.