A South Korean court has fined two individuals for creating a Bitcoin (TIKER: BTC.EXANTE) pyramid scheme that had amassed over 26 billion won (approximately $24 million) from investors.
Judge Hwang Jin-jin of the Incheon District Court in Korea in a ruling on April 19 issued sentences in fines of $15 million and $8 million for two unnamed individuals found to operate a pyramid scheme that raked in 16 billion won and 10.6 billion, respectively.
The first individual is seen as the mastermind of the multi-level investment scheme based out of the Philippines that promised investors high returns through purported investments in Bitcoin.
The other individual, who served as chairman of the company managing the investments, is currently on the run with Interpol engaging in an active search for the fraudster.
The “considerably large” fines were based on the volume of investment poured into the fraud by many victims, the judge reported.
By Jade Olafson