The US Department of Justice (DoJ) charged Douglas Jae Woo Kim with wire fraud at a New York federal court. Kim appeared before US Magistrate Judge Sallie Kim on July 15 to face the charge involving a crypto scam. Authorities have alleged that the 27-year-old New Yorker posed as an experienced cryptocurrency trader to his friends, asking them to lend him money for trading. Kim started in 2017 when he allegedly contacted his first victim, asking for a short-term loan. He claimed to be investing in a digital currency trading platform where he would make money from fees charged.
Kim reportedly received $200,000 in ETH from the victim that he converted BTC.
The accused New York resident claimed to be investing in a crypto trading platform where he would make money from fees charged, authorities said, noting that the suspect told friends he invested up to $400,000 of his own money. According to the authorities, Kim touted a very low risk and fairly modest digital currency investment to another victim and requested a short-term loan. Kim reportedly received $200,000 in ETH from the victim, which he allegedly converted to BTC. Authorities said Kim transferred the assets he received to internationally licensed online gambling sites.
Kim could face jail time of up to 20 years for his role in the crypto scam.
The accused in the case is facing one count of wire fraud, which could land him in jail for up to two decades, with a $250,000 fine, if convicted. The court could also impose additional terms such as supervised release and restitution if it deems fit. Kim’s next court appearance is on August 19, 2020. Crypto scams around the world have increased amid the ongoing global pandemic. Earlier, the largest telecommunication company in Argentina reportedly became a target of a ransomware attack. As the crypto industry continues to gain mainstream exposure, the crimes related to crypto have also spiked around the world.