Scammer lured investors to send millions of dollars in cryptocurrencies with high-levels of interest

According to a criminal complaint at the U.S. Attorney’s Office charges Douglas Jae Woo Kim, who allegedly tricked three investors with more than $ 4.5 million worth of cryptocurrencies, such as Bitcoin and Ether.

scammer-lured-investors-to-send-millions-of-dollars-in-cryptocurrencies

Scammer lured investors to send millions of dollars in cryptocurrencies with high-levels of interest

The Ministry of Justice (DOJ) states:

“Kim told Investors he was a cryptocurrency trader and asked for loans for a low-risk investment he exported he had already transformed $ 300,000 to $ 400,000 into.”

Later, DOJ accused that:

“After receiving the funds, Kim sent either all or a substantial amount to offshore crypto gambling websites, Nitrogen Sports and Fairlay.”

From October 2017 to May 2020, Kim persuaded the three investors to transfer a total of 123 Bitcoin (~ $ 1.1 million), 15,252 Ether ($ 3.5 million), as well as about $ 30,000. U.S. dollars. Although Kim promised the loans would be repaid with high-interest rates, most of Bitcoin and Ether has not yet been repaid. In particular, only one investor, so far, has been fully refunded.

According to the Federal Bureau of Investigation (FBI), none of the investors had an idea that their money was being used on gambling sites.

The FBI also said the following:

“Kim has been trying to convince new investors to lend since February 2020.”

DOJ charged Kim with a line fraud; he appeared before the judge to face allegations on Wednesday. If convicted, he faces up to 20 years in prison and a fine of $ 250,000.

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