‘Romantically Involved’ USD 3.8M XRP Thieves Sent to Prison for 7 Years

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Key Takeaways:

  • A duo will spend the larger part of a decade in prison after stealing USD 3.76 million in XRP tokens from a crypto investor in 2017. 
  • They were sentenced to seven years in prison in 2017.
  • In January 2016, the anonymous pair began preying on their victim (referred to in the media as C) when C set up a digital wallet and acquired XRP through A, who was acting as a crypto broker at the time and getting commissions from his customers.

After an appeals court in South Korea concluded that the couple should spend the better part of a decade behind bars for stealing USD 3.76 million worth of XRP tokens from a crypto investor in 2017, they were sentenced to seven years in prison.

The company and network are known as Ripple, and the cryptocurrency coin is known as XRP. The goal of XRP is to act as a form of temporary settlement layer denomination, acting as an intermediary mechanism of exchange between two currencies or networks.

The court, a branch of the Suwon High Court, heard that the couple, who were “romantically involved,” devised a scam by posing as brokers to obtain a cache of XRP 20.25 million, according to Chosun Ilbo (USD 12m).

The unnamed couple, referred to in the media as A and B for legal reasons, began preying on their victim (referred to in the media as C) in January 2016, when C set up a digital wallet and purchased XRP through A, who was working as a crypto broker at the time and receiving commissions from his customers.

Then A proceeded to introduce B into the equation gradually. B made money by “managing” customers, crypto assets and wallets, and the two had started a “romantic connection.”

B was introduced to C by A, who told him that B was an excellent crypto broker who could assist protect C’s cash. C ultimately decided to put their faith in B. C finally turned over the monies or the private keys to their wallet to B in a coffee shop in Gangnam, Seoul, in October 2017, after paying a commission fee.

The couple, however, proceeded to convert over USD 1 million worth of tokens to cash, which they then spent on expensive cars and “precious metals,” failing to return the remaining amount.

C eventually discovered what had occurred and reported it to the authorities, who arrested A and B. Last August, the two were charged with various economic offences  under the Criminal Code, and the presiding court sentenced them both to seven years in jail.

The two had hoped to have their sentences reduced or overturned, but judges on the Suwon High Court upheld both, saying:

                     “The defendants inflicted damages worth [around USD 3.76m] on the victim: The size of the fraud was large; the damages were not repaired, the defendants bought expensive precious metals and automobiles after committing the crime, and the victim wanted them to be punished for what they had done.”

Ripple Gets $15 Billion Valuation amid Stock Buyback:

Ripple, a blockchain payments firm based in California, has completed a private buyback round of its equities, valuing the company at $15 billion.

Ripple’s CEO, Brad Garlinghouse, has announced on Twitter that his company has acquired back its Series C shares, which were sold to investors in December 2019 to raise funding at a $15 billion valuation.

The XRP coin, related to Ripple, has been dubbed the ‘Banker’s Coin’ in the cryptocurrency industry because its technology allows banks and other financial services organisations to transmit money across borders faster and at a cheaper cost. The company also sells On-Demand Liquidity, a product that uses XRP for cross-border payments, and assists with the issue of Central Bank Digital Currencies (CBDCs).

Tetragon Financial Group, which tried unsuccessfully to retrieve $175 million in investments from Ripple, was also a participant in the transaction.

“The buyback places Ripple’s new valuation at $15B and reflects Ripple’s strong position in the market and global company momentum. Ripple’s global business has grown exponentially, and 2021 was the company’s best year to date,” Ripple claimed.

Meanwhile, Ripple is involved in a legal dispute with the US Securities and Exchange Commission, which accuses the business of illegally raising $1.2 billion by selling an unregistered security, XRP. The dispute has been pending in US courts for more than a year, and its outcome might determine Ripple’s destiny.

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Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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