A South Korean court has sentenced a money launderer to two and a half years in prison over a fake-coin investment scheme, in the first conviction under the country’s Virtual Asset User Protection Act in a fraud case that did not originate with financial regulators.

The Goyang branch of the Uijeongbu District Court ruled that the defendant, identified in court records only as “A,” knowingly moved proceeds from a sham token sale through business accounts and onward to organizers of the scheme. The sentence, handed down in July, became final in October after an appellate court rejected his challenge.

The case marks a widening of enforcement under the law, which took effect in July 2024 and bars deceptive conduct tied to digital assets….