A South Korean court sentenced a 43-year-old man to two years and six months in prison for participating in a crypto pyramid project worth $249 million.
According to Yonhap Lee Sang-wook, a judge at Incheon District Court, who announced that the mining crypto pyramid program is still under investigation. The accused was allegedly the secretary of the illegal company from May 1 to September 23, 2017. No details were given of the scale of his involvement, nor of the specific crypto currency in which the fraud was involved.
The police stated that he played an active role by sending false statements to the victims. The authorities stated that the company was deceiving people by promising them 60% of the profits generated by mining activities. It was later discovered that such activity did not take place.
According to the latest reports, the two suspects behind this fraud managed to escape abroad. The secretary is the only person convicted as a result of an investigation to date.
The South Korean authorities have recently announced that 950 investors have filed a complaint, claiming to be victims of another Ponzi program, code-named after him. The police are investigating an alleged fraud known as Futurenet.
