Victims of a South Korean crypto scam complain that the fraudsters received only a light punishment. The scammers stole more than ₩8 billion, or $5.4 million, from more than 150 people.
Court hands down undersized sentences
A South Korean court convicted the scam leaders of fraud and organized crime. The main ringleader, or “team leader,” was sentenced to 4 years in prison, while the other leader will serve 18 months. The ruling was issued by the Incheon District Court’s Criminal Division 9, presided over by Judge Jung Jae-min.
The same court handed down jail terms of 6 months to 2.5 years to 28 other members of the crypto scam network. The remaining 11 defendants, including another leader, received prison time and probation.
The victims fumed over the lenient sentences and spoke through a lawyer, according to the South Korean newspaper Joongboo Ilbo.
Kim Kyung-nam, lawyer for most of the scam’s 150 victims and head of For You Law Firm, said it is difficult to grasp why the gang members got such sentences.
He added that the victims still cannot live normal financial lives due to these crimes. Kim criticized the court for giving some defendants suspended sentences.
Judges defend leniency as victims face lasting losses
The court ruled that the two ringleaders stole more than $5.4 million from the victims. However, according to the court’s order, neither will go to jail if they avoid reoffending soon.
Kim explained the court gave a four-year sentence to the “team leader” due to their past convictions.
The court clarified its sentencing by stating that most gang members were unaware of the full scope of the crimes when they joined. The judge said the court believes the ringleaders forced them into crime once they understood it was illegal.
The court also added that many defendants confessed and were held responsible mainly as accomplices. The defendants’ names and the cryptocurrency tickers were kept secret due to legal reasons.
Between August 2022 and May 2023, the group focused on residents of Incheon’s Namdong District.
Prosecutors stated the group repeatedly committed crimes with what’s known in South Korea as “scam coin.” These are either counterfeit crypto or unknown, unlisted altcoins.
The prosecution said the group tricked victims into buying worthless coins by promising to sell them later at a higher price.
After getting the money, the group stopped contacting the victims and then laundered the funds.
Kim stated that the offenders deserve a prison term of four to seven years because the crimes were well planned.
Crypto crime and crypto-related fraud are increasing in South Korea. According to the country’s financial regulators, crypto service providers submitted 36,684 suspicious transaction reports. The reports were submitted in a short span from January to August of 2025.
The number of submitted suspicious crypto transactions set a new record. It’s higher compared to the past two years combined.
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