South Korean court charges two Bitcoin Ponzi scheme criminals who stole $20 million

20 April 2018

Authorities in South Korea sentenced two criminals for allegedly defrauding Bitcoin investors leaving them out of pocket for about $20 million. Reports in the media unveil that Incheon District Court in Seoul charged the two Ponzi scheme con-artists and imposed the fines amounting to $15 million and $8 million respectively.

According to the details of the case the fraudulent scheme started back in 2015 and over the time it has turned into a multitier forge company, which fed fables to investors promising them high-yield returns on their deposits made in Bitcoin. The judge noted that the multilevel transaction poses a risk to the socioeconomic order resulting in the mass production of a great number of victims.

In March the US federal court also charged four criminals, which had orchestrated the cryptocurrency Ponzi scheme. According to the filing made by the Federal Trade Commission (FTC), the perpetrators violated the ban imposed by the commission against the deceptive actions, alleging that the case participants used the referral system to attract investors, promising them substantial income for bringing new members.

Thomas Dluca, Louis Gatto and Eric Pinkston, defendants in the case, advertised their Bitcoin Funding Team and My7Network through the websites, videos on YouTube, social networks and conference calls, tricking potential victims into their schemes with the promise to make a $80,000 return on a $100 investment.

Tom Pahl, speaking for FTC, noted: “This case shows that scammers always find new ways to market old schemes, which is why the FTC will remain vigilant regardless of the platform — or currency used. The schemes the defendants promoted were designed to enrich those at the top at the expense of everyone else.”

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