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.
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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.
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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.
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