Crypto trader sent to jail for stealing and defrauding investors

20 Nov, 2018
by Fifi Arisandi
Crypto trader sent to jail for stealing and defrauding investors

An Arizonian guy is sentenced to 15 months in prison for stealing from his company and defrauding investors to enrich himself.

A 24-year old resident of Phoenix, Arizona was sentenced to 15 months in jail after stealing from the company he worked for in the form of cryptocurrency.

Joseph Kim used to work as an assistant trader at Consolidated Trading, a cryptocurrency trading desk, during which he was reported to have stolen around $600,000 in the form of Bitcoin (BTC) and Litecoin (LTC).

The company once questioned him after noticing a shortage in funds, but Kim refuted all the “allegations”. However, after some time, it was pretty clear that he was the actor behind all the loss, thus the company decided to fire him.

Following the dismissal, he started to lying to his close friends and acquaintances by saying that he voluntarily left the company to start his own trading company, in order to get their money.

Some of them bought into his words and even gave him their retirement savings, which he used to enrich himself, as reported by BTC Manager.

According to the indictment, Kim is convicted of stealing in total of $1,145,000, $600,000 of which was in the form of BTC and LTC from the company he worked for and around $545,000 from the funds he collected from his acquaintances.

During the trial, 4 investors testified against the Arizona resident, while the Commodity Futures Trading Commission (CFTC) also filed charges against him, on which he pleaded guilty to them.

On the sentence, the Assistant US Attorneys in charge of the case made a comment, “The criminal justice system will continue to hold traders and investment experts accountable for fraudulent practices.”

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