The CEO of a bogus South Korean crypto bank has been handed a 10-year jail term – after cheating investors out of a total of $181 million.

The news outlets Chosun and Newsis reported that the CEO (surnamed Ko) led a firm named QRC Bank. Ko was convicted of fraud and other charges. Two other QRC executives were also jailed, one for five years and the other for three.

A branch of the Seoul Central District Court Criminal heard that Ko had also headed two associated companies, named QRC Korea and Worldchain. The court heard that Ko and the executives had used these companies to give their scam a veneer of authenticity.

Ko and his associates had claimed that QRC Bank was an “integrated financial platform” that used cryptoassets to power remittances, exchanges, and payments. The court heard that around 5,400 people invested in QRC-related programs.

The court also heard that Ko began his program in December 2019, and had “deceived investors” by “guaranteeing them 300% returns on their crypto-related investments.”

(By Tim Alper)