South Korean Crypto Criminal Sought Leniency — Appeal Ends With Sentence Doubled

A South Korean man’s attempt to secure a lighter punishment for laundering funds through cryptocurrency has backfired dramatically, with an appeals court overturning his suspended sentence and sending him to prison for four years.

The defendant, a man in his 30s whose identity was not disclosed, was originally sentenced in 2024 by a district court to two and a half years in prison, suspended for four years, along with a probationary period. The court had opted for leniency, allowing him to avoid jail provided he committed no further crimes during the suspension period.

Unhappy with the outcome, the man appealed to the Suwon High Court in hopes of reducing the sentence further. Instead, the court reversed the suspension entirely and imposed an immediate four-year jail term, according to a report by South Korean newspaper Kyeonggi Shinmun.

The High Court ruled that the defendant had played a far more significant role in the criminal operation than the district court initially recognized. Judges concluded that he was not merely a peripheral participant but a key operator within a voice phishing ring that used cryptocurrency to launder approximately $68,000 stolen from victims.

Prosecutors told the court that the group impersonated public prosecutors, contacting victims and falsely claiming their identities had been used to open fraudulent bank accounts. Victims were warned their assets were at risk and instructed to transfer funds to so-called “safe” accounts — which were, in fact, controlled by the criminal network.

Once the funds were deposited, they were quickly converted into cryptocurrency and transferred to wallets in China, making recovery difficult.

Court rejects remorse, warns of repeat offenses

While the defendant’s legal team argued that he had agreed to compensate victims, the appeals court was unconvinced. Judges cited evidence showing the man had previously been linked to similar scams and referred to himself internally as “a person in charge” of the operation.

According to the ruling, he received daily operational reports, issued instructions to other members of the group, and exercised authority within the organization — factors the court said justified a much harsher sentence.

“The defendant played a key role in the voice phishing crimes,” the judge said, adding that the original decision to suspend the prison term could not be justified given the scale of his involvement.

The court further noted that the man had failed to learn from past offenses and remained a high risk for reoffending.

“Despite being fully aware of the illegality and serious social harm caused by his actions, he committed the same type of crime again. There is a strong likelihood that he will repeat such offenses.”

Under South Korean law, the defendant retains the right to appeal to the Supreme Court — though a failed appeal could result in an even longer sentence.