Three South Korean Women Receive Suspended Sentences for Participating in Cryptocurrency Ponzi Scheme
Date: 2025-09-17 Author: Oliver Abernathy Categories: IN WORLD
A South Korean court has sentenced three women to suspended sentences and fines for their participation in the V Global cryptocurrency pyramid scheme, which was disguised as a legitimate cryptocurrency exchange. The scheme defrauded around 50,000 people, causing damages totaling $1.44 billion.
The defendants, known as Ms. A, 61, Ms. B, 63, and Ms. C, 57, must pay fines of $475,200, $306,720, and $186,480, respectively. Each of them personally profited between $504,000 and $1.08 million.
The investigation established that the women actively participated in a multi-level marketing scheme, fraudulently recruiting new members from July 2020 to April 2021. The court noted the seriousness of the crime, emphasizing the scale of social and economic harm suffered by more than 50,000 people.
"They exploited public interest in virtual assets, resulting in massive financial and psychological losses. This level of damage requires severe punishment," the court stated.
V Global's operating mechanism revolved around the promise of high returns—up to 300% on investments in its proprietary V Cash token. The minimum deposit was approximately $4,860, and a commission of approximately $1,200 was charged for recruiting new members. To boost investor confidence, the platform imitated a legitimate exchange and hired reputable individuals to promote the scheme.
The scam began to unravel when investors were unable to withdraw their funds. In 2023, V Global's CEO was sentenced to 25 years in prison, while other executives and participants received varying sentences depending on their involvement.
The V Global case has become yet another reminder of the risks of investing in cryptocurrency projects without due diligence and transparency. South Korean authorities continue to crack down on such schemes to protect citizens and maintain trust in the financial market.
