Billions at Stake: The Shadowy Gift Trading Site That Became a Gambling Empire
South Korean Court Sentences Gang to Prison for Operating Unlicensed Futures Trading Site
Busan District Court has sentenced two individuals to prison for their involvement in operating an unlicensed futures trading site and a gambling space where people bet on the rise and fall of indexes.
Chief Judge Kim Tae-woo of the Busan District Court Criminal Division 5 announced the sentences on September 17. Mr. A, in his 30s, was sentenced to 1 year and 6 months in prison, while Mr. B, in his 20s, received a 10-month prison sentence. Both were indicted on charges of violating the Capital Market and Financial Investment Business Act, violating the Electronic Financial Transactions Act, and opening a gambling space.
The group, which included other accomplices, created an unlicensed futures trading site and recruited members to bet on unlicensed financial products that predicted the rise and fall of futures indices. Members deposited margin for futures trading, which was converted into points and recharged. Depending on the results of domestic and international futures product betting, some of the deposited amount was returned as profits, while the rest was collected as members’ losses.
Persons A and B secured ‘cannon accounts’ necessary for operating a gift trading site and withdrew the laundered proceeds of crime in cash. They distributed and transferred the funds to accomplices, with the transaction amount deposited into their bank accounts alone amounting to 112.9 billion won.
Mr. A received 600 million won as proceeds of crime, and during the search and seizure by investigative authorities, two luxury watches and several luxury goods boxes were found in his house. The court also ruled that Mr. B’s home was used to squander a significant amount of the proceeds of crime, including the confiscation of luxury foreign cars.
The court stated that the nature of the crime was “considerably serious” as the defendants participated in a crime that exploited futures trading, which has the potential for losses exceeding the investment principal. The court also noted that the futures trading amount was very large, and the criminal proceeds obtained were substantial compared to the effort invested, making a prison sentence inevitable.