Cryptocurrency News Today: This cryptocurrency exchange was actually a $384 million Ponzi scheme

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Cryptocurrency News Today: This cryptocurrency exchange was actually a $384 million Ponzi scheme

The CEO of South Korean Cryptocurrency “exchange” CoinUp has been sentenced to 16 years prison for his role in defrauding investors out of 450 billion won ($384 million), Yonhap News reports.

Mr. Kang-mo, alongside a raft of his executives, were found to have deceived thousands of CoinUp customers by promising returns of up to 200 percent on Cryptocurrency investments, just 4-to-10 weeks after purchase.

A judge also sentenced the firm’s chief financial officers, Mr. Kwon and Mr. Shinmo, to 11 years in prison. CoinUp’s “governor” Mr. Yunmo was given 7 years imprisonment, alongside his mother-in-law.

Several other executives were reportedly sentenced to between six and nine years in prison.

CoinUp promised crypto prices would increase after listing

The investments CoinUp execs shilled had little-to-no chance of increasing in value. Local outlet TVCC reported that CoinUp execs would convince their victims to invest by promising to list the coins in the near future.

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