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South Korean court increases sentence for crypto scam that raised $311M in public funds   Terraform CEO Kwon charged in U.S. for $40B crypto fraud, pleads not guilty   Courts now treat crypto like cash in illegal fundraising cases under revised interpretations In a sign of increasing regulatory scrutiny within South Korea, an appeals court has handed down a stiff seven-year prison sentence to a man, identified only as Hahm, convicted of running a fraudulent cryptocurrency investment scheme. As reported by The Hankyoreh, this ruling significantly increases Hahm’s original five-year sentence, emphasizing the seriousness of illegal fundraising activities, regardless of whether crypto or cash is involved. Here’s how the scheme operated: Between February and July 2023, Hahm and a partner held investment seminars across the country. They lured attendees with promises hard to resist – guaranteed principal protection and seemingly impossible daily returns of 1% to 1.38%. To participate, investors had to use a specific payment app linked to a cryptocurrency the organizers were pushing. Related: South Korea Accelerates Crypto Regulations as U.S. Policies Shift The court found that this wasn’t just a small operation. Hahm’s activities involved roughly 140,000 transactions, illegally raising about 446.7 billion won (around $311 million) from the public. Crucially, the appeals court stated these actions counted as illegal deposit-taking under South Korean law. This decision is significant because it overturned a lower court’s ruling. That earlier decision had acquitted Hahm on some charges by treating crypto assets differently from cash, based on older legal views. The appeal court’s stance closes that potential loophole, making it clear that rules against illicit fundraising apply firmly to the crypto space in South Korea. Meanwhile, Terraform Labs Founder Faces Major US Fraud Charges The crackdown isn’t limited to local schemes. In a high-profile case with global repercussions, U.S. federal authorities are…

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Filed under: News - @ April 25, 2025 12:27 pm