Ethereum Fraudster Sentenced to 2.5 Years Behind Bars

    Source: Adobe/ketkata


    An ethereum (ETH) con artist has been sentenced to two and a half years in prison in South Korea – after being convicted of masterminding a scam promising investors returns of “hundreds of times” their initial stakes.

    Per Yonhap and the Kyoungsang Ilbo, a court in the South Eastern port city of Ulsan heard that the fraudster, named by the media as “A” for legal reasons, collected payments of ETH 15 (worth around USD 59,000 today) and over USD 10,000 worth of fiat from victims in early 2018, claiming that he would provide them with exclusive access to three cryptoassets.

    The tokens are all Ethereum blockchain-based, and were named as NGOT, brahmaOS, and stargram by the media outlet Law Issue – but A’s access to pre-sales was purely fictional, the court heard.

    The court heard that A, aged 39, told his victims that the tokens were about to launch, and that the coins he was offering were part of an exclusive pre-sale event that only he had access to.

    A, the judge was told, “had no intention of using the money and ethereum he received” to invest in the tokens he had claimed to be representing, and instead appears to have cashed in the ETH tokens, which he received on a personal account on the crypto exchange Upbit, to fund his lavish lifestyle.

    The fraudster enjoyed somewhat limited success, only duping two victims. But the two people he did succeed to ensnare in his scam appear to have fallen for the ruse hook, line, and sinker: The duo made seven separate payments to A, believing they would receive tokens in return.

    A was also convicted on a separate drunk driving offense during the same hearing.

    The judge, who handed out the jail term, in addition to a further five years of probation, stated:

    “The court’s sentencing has been made in consideration of the amount of damages caused by this instance of fraud.”

    Learn more:
    – SEC Hits BitConnect Founders, Promoters with Fresh Fraud Wrap
    – Man Fakes Own Kidnapping and Runs Off with USD 1.15M in Clients’ Bitcoin 

    – Asian Lonely Hearts Falling Victim to Bitcoin, Tether Scammers 
    – Crypto Sector World’s 3rd Industry in Phishing Attacks Growth – Report 

    Related articles



    Please enter your comment!
    Please enter your name here

    Share article

    Latest articles

    ‘It’s going to be very obvious that every bank needs to become a crypto bank,’ says CEO of bank to nab 1st federal charter...

    Happy Thursday! Welcome to Distributed Ledger, our weekly crypto newsletter. I’m Frances Yue, crypto reporter at MarketWatch, and I’ll walk you through the latest...

    Academic research claims ETH is a ‘superior’ store of value to Bitcoin

    Australian university researchers have questioned Bitcoin’s reputation as the best store of value network in cryptocurrency, with Ethereum on track “to becoming the world’s...

    SHIBA INU: What the Charts Say Is Next for Shiba Inu

    It’s been a wild ride for Shiba Inu (CCC:SHIB-USD). The cryptocurrency got hot in early October, then exploded higher at the end of the...

    NEKTR Set to Become the World’s First Pro-Medical Cannabis NFT Gaming Platform

    RICHLAND, Wash., Dec. 2, 2021 /CNW/ -- At a time when most countries still maintain a tough legal regime prohibiting the use and supply...

    WazirX, Presearch and Komodo rally after data shows a surge in user activity

    The characteristically volatile nature of the cryptocurrency market is back in full force on Dec. 2 after the optimism of the past couple of...


    Subscribe to stay updated.