Executives of V Global Exchange Served Jail Sentences

Two top executives of the defunct crypto exchange, V Global have been sentenced to jail for defrauding customers through the trailing platform.

A translated report revealed that the two executives Mr.Yang and Mr. Oh are the latest to be detained from the insolvent firm. Yang was given an 8 years jail sentence while Oh was sentenced to 3 years. Seven V Global executives are currently incarcerated and completing their sentences as a result of their varying convictions.

Reports from local news media revealed that the management of the insolvent V Global platform duped customers by creating a pyramid scheme that claimed to triple customers’ funds if they opened accounts worth millions of South Korean won to become exclusive exchange members.

Additionally, they paid actual profits, which are seen as a type of spin-off that pays members who joined first the capital of members who joined later in the name of profits. Approximately 60,000 members were recruited in this manner, and the damage was estimated to be 3.8 trillion won.

The exchange was also alleged to have promised its customers a 1.2 million won referral bonus if they successfully refer other investors through their link.

South Korean Authorities Sanitize the Industry

The arrest of the executives comes after the South Korean government said it aims to change laws in the crypto space in order to take control of exchanges in the country in addition to protecting the assets of crypto users.

South Korean authorities recently seized assets worth $92 million that were linked to Terra tokens.

It was reported that Kim Hyun-Joong, the CEO of Kernel Labs, received approximately $61 million in illegal funds from Terra, and another executive of Kernel Labs received $31 million in illegal gains before the collapse of the Terra ecosystem.

In October, authorities in South Korea were reported to have frozen $39 million in crypto assets that were linked with Do Kwon, the CEO of Terraform Labs.