South Korean CoinUp’s President and Eight Other Execs Behind Bars for Swindling Investors
South Korean crypto exchange, CoinUp gets tainted, as many of its executives have officially been arrested following a year’s worth of investigation, reports BeInCrypto. To be more specific, President of CoinUp, Kang Seok-Jung gets a 16-year sentence followed by the firm’s Chief Financial Officers and Vice Presidents, all of whom have swindled investors of 400 million won (USD$386 million).
In order to raise funds, CoinUp executives promised a 200 percent return on investments if investors contributed to packaged products. In doing so, many edits were created to make every offering legitimate.
The Court ruled that this is a case in which crypto interest was misused, leaving many victims of a fraud that is “deceptive, organized and precise.”
It was further highlighted that,
“Mr. Kang is the representative who actually operated CoinUp and […] who led the crime by setting up the allowance system and planning the coin products.”
South Korea has always been the forefront in limiting fraudulent use of cryptocurrencies, however, as per the news outlet the country is supposedly seeking a friendlier approach to regulation that promotes both innovation and growth of businesses.