The head of cryptocurrency exchange – Coinup has been arrested for a fraudulent crypto-related scheme that amounted to over USD 386 million, along with the company’s Vice President and eight executives. A court in South Korea has sentenced the head of Coinup, Kang Seok-Jung, for 16 years after convicting him of fraud, whereas, vice president for 11 years along with eight other officials.
It was reported that Coinup launched a campaign in 2018 and was shut down by police in February this year. In order to raise the funds, the executives promised a 200% return on investments to investors if they contributed to packaged products.
The executives of Coinup created fake images that featured overseas data centers, English-language based news platform and a fake video. The company went to the extent to photoshopping and distributing a picture of Kang standing next to the country’s President Moon Jae on the cover page of a reputed South Korean magazine.
The company made bold promises and had told its investors in a South Korean convention center (*which accommodated over 5000 attendees) that they would receive a return of 200% on their investments in 4 to 10 weeks.
Source – Cryptonews