Online fraudsters sentenced for laundering stolen funds via cryptocurrency

A group involved in an online fraud and cryptocurrency money laundering operation has been sentenced to prison. The individuals acted as money launderers for an internet theft organization, ultimately defrauding 98 victims of approximately 50 million won (around $36,000 USD).

The scheme involved creating fake sales listings on platforms like Karrot Market (Danggeun Market) and Joonggonara. After tricking victims into sending money to designated accounts, the perpetrators converted the funds into virtual currency, such as Tether, through exchanges like Bithumb. These cryptocurrencies were then transferred through overseas exchanges to digital wallets controlled by the organization, effectively hiding the criminal proceeds.

“

Internet item fraud disrupts the order of electronic commerce and is a crime where victim recovery is not easy.

One defendant, identified as Mr. A (20s, male), received a one-year prison sentence for fraud and money laundering. Mr. B (20s, male) was sentenced to eight months, and Mr. C (40s, male) received six months for aiding the fraud by lending out his accounts and exchange credentials for a fee.

The court noted the organized nature of the crime, with roles including ringleader, recruiter, account collector, and money launderer. While acknowledging the defendants' remorse and limited involvement in planning, the court emphasized the disruption to e-commerce and the difficulty in recovering losses for the 98 victims. The court also denied the prosecution's request to confiscate the defendants' earnings, deeming them derived from criminal activity and ultimately belonging to the victims.

“

The defendants acknowledged and are reflecting on their crimes, did not plan or lead the crimes, their period of involvement was short, and the actual profits obtained were less than the defrauded amount.