• Two high-ranking execs of the fraudulent South Korean crypto exchange, V Global, have been sentenced to eight years and three years in jail respectively.
• V Global lured investors by promising 300% returns and required new users to deposit 6 million won with a guaranteed return of 18 million won.
• South Korean authorities have tightened their control over the digital asset space in response to the fraud.

The recent arrests of two high-ranking execs of the fraudulent South Korean crypto exchange, V Global, have brought the total number of V Global execs serving their sentences behind bars to seven. The two execs, named Mr. Yang and Mr. Oh, were sentenced to eight years and three years, respectively, for their role in defrauding investors.

V Global reportedly lured investors by promising 300% returns. The exchange, which was active from July 2020 to April 2021, required new users to create accounts and deposit 6 million Korean won at the start with a supposedly guaranteed return of 18 million won. However, what V Global did not tell its investors is that it was using their funds to pay off older investors in a classic Ponzi scheme.

V Global also made use of a multi-level marketing system, whereby investors earned commissions by referring others to the platform. This system allowed the platform to gain more attention and attract more users. However, it also meant that the investors would lose their money when the platform eventually collapsed.

In response to the fraud, South Korean authorities have tightened their control over the digital asset space. The Financial Services Commission (FSC) has also increased its monitoring of digital asset exchanges and has shut down several exchanges for non-compliance. It has also taken steps to ensure that investors are aware of the risks involved with investing in digital assets.

The FSC has also urged investors to be more vigilant when investing in digital assets, and to do their due diligence before investing. It has also warned investors to be wary of investing in platforms that promise high returns with little to no risk, as these are usually scams.

The FSC has also advised investors to seek out exchanges that are registered with the FSC and that are compliant with laws and regulations. This will help ensure that investors are protected and their funds are secure.

The recent arrests of the V Global execs and the increased scrutiny of digital asset exchanges by the FSC are intended to send a strong message to those operating in the digital asset space. Namely, that fraudulent activities will not be tolerated, and that investors need to be aware of the risks associated with investing in digital assets.

Overall, the arrests of the V Global execs and the FSC’s increased scrutiny of digital asset exchanges are a sign that South Korean authorities are taking steps to protect investors and to ensure that the industry is operating in a safe and secure manner.