American Citizen Penalized $1.1 Million, Jailed For More Than A Year For Deceitful Crypto Trade

A US man was charged and sentenced for engaging in digital fraud. He was penalized with huge fines and was also imprisoned for one year and five months.


This man was identified as Joseph Kim who resided in Phoenix. The main crime committed in this case was embezzling Bitcoin and Litecoin from many individuals. The information was made public by CFTC reports on November 9th. The main intention behind trying the case was to discourage people who may be hatching schemes to engage in cybercrimes from continuing.

Kim Steals Huge Amounts Of Money From His Employer And Shareholders

CFTC discovered that Kim stole enormous sums of money from Chicago-based registered exchange corporation. The fraudster transferred around $601,000 of Bitcoin and Litecoin to his personal accounts last year.

He was later questioned about the missing digital money. That was when he revealed an excuse that he  had transferred the crypto to numerous accounts because of security matters. After the discovery of this fraud, Kim was dismissed from the company.

Afterwards, Kim deceived private shareholders with an aim of compensating his employer for the lost money. The CFTC disclosed that he raised $545,000 worth of cryptos from investors through false means. He told them the intention was to start his own exchange firm after leaving his former workplace voluntarily. Kim used investor’s resources in a high-risk bet which led to loses.

Consequently, Kim was instructed to pay both the clients and his previous corporation $1.1 million. The money was awarded as damages for losses suffered. Additionally, the commission banned him from trading in virtual assets in the future.

Kim Pleads Guilty For The Crimes Committed

In a different lawsuit brought by an American Lawyer in Illinois, the offender plead guilty to stealing from his employer and embezzling private shareholders' money. However, he said that he had served a fifteen month jail-term for the crimes committed.

James McDonald, who is a CFTC official, suggested the regulatory body will collaborate with other relevant institutions such as the FBI to avert potential future digital money crimes in US.

At the beginning of November, the SEC charged Zachary Coburn with operating a securities exchange without a licence. He is the founder of the EtherDelta digital token platform. The offender agreed to pay a substantial fine amounting to $400,000 over a period of one year and six months.

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