Victims of the V Global crypto exchange scam have urged for "maximum punishments" for the company's executives before their trials.
Next month, fourteen executives, including the V Global CEO, will go on trial at a branch of the Suwon District Court following their arrest in April. The investors' group, however, says that 40 additional officials should be charged with fraud.
If found guilty, the executives could face a three-year jail sentence or more. However, the investors maintain that only severe prison sentences for all parties will prevent the alleged fraud masterminds from repeating their crimes. Senior government officials have been implicated in another purported MLM conspiracy involving a long-closed cryptocurrency exchange.
The group was quoted as saying:
“The platform is not making any effort to return the victims’ investment money, which they acquired through unfair means. They should be handed the maximum sentence available by the court. The judge should issue a sentence accordingly.”
The victims stated that “the prosecution service and the police must arrest all high-ranking officials at all levels [of the pyramid] so that there will be no more victims like us in the future.”
According to reports, police in Seoul claim that the exchange may be the hub of a fraud wheel that has attracted roughly $2 billion in investment. Since the detentions, the platform's website has been taken offline, and cops raided the exchange's offices last summer.
The authorities were looking into the deal as far back as last year, after a number of disgruntled investors claimed that they had been unable to get their bitcoin out of the exchange. According to police estimates, up to 52,000 people may have been drawn in by promises of exponential development.
With real-time price tracking information for major cryptoassets like bitcoin (BTC), ethereum (ETH) and numerous altcoins, the platform appeared to be just another crypto trading platform to the untrained eye.
In May 2021, the authorities seized USD 214 million in corporate assets.
According to V Global, the unique airdrop service paid out its own V Cash tokens when new cryptocurrencies were added on the platform. However, police claim that the site was illegally utilizing multi-level marketing (MLM) techniques.
All multi-level sales operations in South Korea are required by strict regulations to register with a regulator and adhere to the Act for Door-to-Door Sales.
According to Yonhap, the group of supposed victims has stated that in order to join the platform, investors were required to put up a minimum of $5,000 worth of fiat or cryptocurrency.