Crypto Laundering: A Costly Gamble

Initial Sentence and Appeal

• Initial Sentence:
• Four-year probation
• Suspended two-and-a-half-year jail sentence
• Crime: Laundering approximately $68,000 through cryptocurrency for a voice phishing gang.
• Appeal: The man appealed to the Suwon High Court for a lighter sentence.

Appeal Outcome

• Denied Request: The court denied his request for a reduced sentence.
• Revocations:
• Suspension revoked
• Full four-year jail sentence imposed
• Court's Reasoning:
• The man was a key player in the operation, not a minor participant.
• The original suspended sentence was deemed unacceptable.

The Man's Role

• Activities:
• Converted stolen funds into an unnamed cryptocurrency.
• Transferred funds to a Chinese address.
• Voice Phishing Scheme:
• Impersonated public prosecutors.
• Warned victims about identity theft.
• Advised transferring money to "safe" accounts (controlled by criminals).
• Funds were quickly emptied after transfer.

Legal Defense and Court's Response

• Defense Argument:
• The man agreed to compensate victims for their losses.
• Court's Response:
• Unconvinced due to his history of involvement in similar scams.
• Noted his self-reference as "a person in charge".
• Highlighted his active involvement in day-to-day operations.
• Gave orders to other members.

Court's Conclusion

• Assessment:
• The man had not learned from his past mistakes.
• Likely to reoffend.
• Punishment:
• Severe punishment deemed necessary.
• Further Appeal:
• Under South Korean law, he can appeal to the Supreme Court.
• The Supreme Court could either uphold or extend his sentence.