South Korean Chief executive officer Jailed for ‘Misappropriating’ Partner Firm’s Ethereum Funds

Source: Amnaj/Adobe

A South Korean Chief executive officer continues to be sentenced to 5 years imprisonment for “misappropriating” $2.4m price of ethereum (ETH) from the partner company.

Per the press outlet Delight, the 43-year-old man, identified only by his surname (Chae), may be the mind of the “marketing agency” that are responsible for crypto funds.

A branch from the Seoul Northern District Court heard that the organization labored having a telecoms and broadcasting firm that’s mixed up in blockchain space.

The telecoms firm holds a patent for any new type of blockchain-powered mobile communication resource discussing. It launched a “reverse” initial gold coin offering (ICO) through the marketing company.

Overturn ICO elevated some ETH 38,099 from investors, and also the funds were held under the treating of Chae’s company.

Man ‘Made A large number of Unauthorized ETH Transfers

But, a legal court heard, in October 2018, Chae started “arbitrarily” transferring a few of these ETH funds to accounts held by another company he owned. He started having a amount of ETH 300, but eventually transferred “a total of ETH 21,245.99” during the period of “dozens of transactions.”

Ethereum (ETH) prices in the last 24 hrs. (Source: CoinGecko)

The prosecution also accused Chae of buying and selling a few of the coins for fiat, and transferring these to wallets locked in his wife’s name. However the judge rejected these calls.

The judge also rejected the mobile communication company’s appeals for compensation. The judge claimed that in a few instances, it had been impractical to think that Chae had acted alone and with no mobile communication company’s understanding.

Regardless, the judge did find Chae responsible for violating the Act upon the Irritated Punishment of Specific Economic Crimes. This bit of legislation was amended to incorporate crypto clauses in 2020.

This past year, a court sentenced a fraudster who duped victims from around $ million price of bitcoin (BTC), and ETH to 5 years in prison. The criminal claimed to possess produced a blockchain-powered platform for webtoons, web-based cartoon strips that enjoy enormous recognition in Columbia.

As well as in 2020, police shut lower a fraudulent “ethereum wallet”-themed multi-level marketing-type project. The project’s masterminds elevated $44.5 million from around 3,000 victims.

Latest stories

You might also like...