New Yorker raised $ 4.5 million for crypto trading, but spent on gambling
27-year-old New Yorker fraudulently attracted from investors several million dollars in cryptocurrency and used this money to participate in gambling on offshore sites, says accusatory conclusion American prosecutors.
Kim Jae Woo Kim accused of electronic fraud funds three-person ties, which provided him with a total of over $ 4.5 million. According to charged, Kim posed as a cryptocurrency trader and claimed that he needed money for low-risk transactions. Himself is he allegedly invested $ 300,000 – 400,000.
From October 2017 to May 2020, he managed to convince investors to invest in him company 123 bitcoin ($ 1.1 million), 15,252 ETH ($ 3.5 million) and $ 30,000. He used the received money for engaging in gambling on Nitrogen Sports and Fairlay sites.
“Under the terms of the agreement on January 1, 2018, one of victims handed over to Kim about $ 200,000 in ETH. IN Tom the same day Kim converted more than half of these funds into BTC and over the next days translated almost all the converted cryptocurrency on your account in an offshore casino, “- said in a statement from the Ministry of Justice.
Kim promised to return assets investors with high interest, but until paid off only with one of them. According to FBI, investors didn’t know about Tom, how are they actually used their money. The department also reported, what after February 2020 of the year Kim tried to attract new members to his scheme.