The head of the South Korean cryptocurrency exchange Coinup, whose name is not disclosed, was sentenced to 16 years findings of fraud. His accomplices received from 6 to 11 years in prison, reports The News Asia.
Attackers were accused of organizing a cryptocurrency pyramid and the so-called “pump and dump” scheme. They claimed that investors would receive 200% profit in 4-10 weeks.
To convince investors, Coinup executives also created a magazine that posted a fabricated photo of the CEO's exchange with South Korean President Moon Jain.
The scheme ran from August 2018 to February 2019. With its help, criminals raised over 450 billion won (over $ 386 million).
The court found guilty of the majority involved in fraud. Another Coinup executive received 11 years in prison, and the company's vice president 7 years.
Recall that in the summer, the founder of the BitFunder Bitcoin exchange and WeExchange platform, John Montroll, was sentenced to 14 months in prison on charges of fraud.