Supreme Court upholds confiscation of cash from Cambodia-based investment fraud member
In short
The Supreme Court finalised a four-year sentence and the confiscation of about 243.25 million won in cash seized from a member of a Cambodia-based investment fraud group, reports dated 22 October said. The group was accused of taking about 6.1 billion won from 321 victims in a Ponzi scheme. The court found that victims would find it extremely hard to trace the money themselves.
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The Supreme Court has upheld a lower-court ruling that ordered the confiscation of about 243.25 million won in cash from a member of a Cambodia-based investment fraud group, according to reports dated 22 October. Its No. 1 Division, with Justice Ma Yong-ju as lead justice, finalised a four-year prison sentence for the defendant, identified only as A, who was tried for fraud and violating a law regulating quasi-deposit-taking activities. [ 1 , 2 , 3 , 4 , 5 ]
The group recruited investors by saying that betting against football match results would bring profit with a 93.75% probability and protect their principal, according to Newsis, Seoul Economic Daily and Hankook Ilbo. In reality it operated as a Ponzi scheme, paying existing investors with new investors' money. Seoul Economic Daily and Hankook Ilbo said the group posed as a well-known resort through a gambling site, and Hankook Ilbo described the resort as Malaysian. Asia Economy and Seoul Economic Daily said A handled member management, including recording members' names, grades and investment amounts and answering inquiries. Newsis, Seoul Economic Daily and Hankook Ilbo said A was also involved in laundering the proceeds. [ 1 , 2 , 4 , 5 ]
A was accused of conspiring with other members to take about 6.1 billion won from 321 victims. Newsis gave the figure as 6.12283 billion won, and Seoul Economic Daily gave the period as 3 March to 12 May 2025. Cash of 243.25 million won was found at A's home and in a car, kept in bundles of 100 fifty-thousand-won notes, according to Newsis and Seoul Economic Daily. [ 1 , 2 , 3 , 4 , 5 ]
The central question was whether that cash could be confiscated. Under the special act on confiscating and recovering corrupt property, money taken from fraud victims cannot in principle be confiscated, but it can be where recovery of damage is extremely difficult. [ 1 , 2 , 3 , 4 , 5 ]
The first-instance court sentenced A to 4 years 6 months and did not confiscate the cash. Asia Economy, Yonhap and Seoul Economic Daily said it treated the cash as victim property but could not conclude that recovery was extremely difficult, while Newsis said it judged the cash was not victim property. The appeals court cut the sentence to four years and ordered confiscation of the cash. Yonhap and Seoul Economic Daily said the cut took into account A's settlement with 71 victims. The appeals court noted that the group used virtual currency to launder funds from a Cambodian base, making it likely that most proceeds were taken abroad and practically impossible for victims to trace the money and pursue claims, according to Newsis, Yonhap, Seoul Economic Daily and Hankook Ilbo. [ 1 , 2 , 3 , 4 , 5 ]
The Supreme Court found no error in that judgment and rejected the appeal. Seoul Economic Daily quoted the court as saying the lower court had not exceeded the limits of free evaluation of evidence or misread the legal principles on confiscation. A Supreme Court official was quoted by Seoul Economic Daily as saying the confiscation is not for the state to take the seized cash but to return it to victims. [ 3 , 4 ]
Why it matters
The ruling shows that cash seized from a fraud suspect can be confiscated, even though it is victim property, when victims can realistically not recover it themselves. A Supreme Court official quoted by Seoul Economic Daily said the confiscation is meant to return the money to victims.
Key facts
- The Supreme Court's No. 1 Division, with Justice Ma Yong-ju as lead justice, upheld a four-year prison sentence and the confiscation of about 243.25 million won in cash for a defendant identified as A. [ 1 , 2 , 3 , 4 , 5 ]
- A was tried for fraud and violating the law regulating quasi-deposit-taking activities, as a member of an investment fraud group based in Cambodia. [ 1 , 2 , 3 , 4 , 5 ]
- The group was accused of taking about 6.1 billion won from 321 victims, with investors told that betting against football results would bring profit and protect their principal, while it operated as a Ponzi scheme. [ 1 , 2 , 3 , 4 , 5 ]
- The cash was seized from A's home and car, according to four outlets. [ 1 , 2 , 4 , 5 ]
- The first-instance court gave 4 years 6 months and did not confiscate the cash; the appeals court cut the sentence to 4 years and ordered confiscation. [ 1 , 2 , 3 , 4 , 5 ]
- The appeals court found it likely that most of the criminal proceeds were taken abroad after laundering with virtual currency, making it practically impossible for victims to trace the money. [ 2 , 3 , 4 , 5 ]
Confirmed by several sources
- The Supreme Court upheld the appeals court's four-year sentence and confiscation of about 243.25 million won in cash seized from A. [ 1 , 2 , 3 , 4 , 5 ]
- A was part of a Cambodia-based investment fraud group accused of taking about 6.1 billion won from 321 victims through a Ponzi scheme. [ 1 , 2 , 3 , 4 , 5 ]
- Under the special act on confiscating and recovering corrupt property, property taken from victims of fraud cannot in principle be confiscated, but can be in the exception where recovery of damage is extremely difficult. [ 1 , 2 , 3 , 4 , 5 ]
- The first-instance court sentenced A to 4 years 6 months and did not order confiscation. [ 1 , 2 , 3 , 4 , 5 ]
Still unclear
- Where the rest of the defrauded money went. Yonhap and Hankook Ilbo, citing the appeals court, said the whereabouts of the remaining funds were not clearly established; the court considered it likely most was sent abroad.
- How the first-instance court treated the cash. Asia Economy, Yonhap and Seoul Economic Daily said it regarded the cash as victim property but found recovery difficulty not established, while Newsis said it judged the cash was not victim property.
- When A joined the group. Yonhap said May 2024, Newsis said June 2024, and Seoul Economic Daily and Hankook Ilbo said May to June 2024.
- The appeals court's finding that A paid 250,000 won each to 71 victims and held no assets in own name. Only Newsis reported this; other outlets said only that A reached settlements with 71 victims.