Ismail J. Ramsey, U.S. Attorney | U.S. Attorney for the Northern District of California
A federal jury in San Francisco has found Douglas Jae Woo Kim, 32, guilty on 14 counts of wire fraud and money laundering. The verdict was delivered following a three-week trial overseen by Senior U.S. District Judge Charles R. Breyer.
Court documents revealed that between October 2017 and June 2020, after relocating to San Francisco, Kim defrauded investors out of over $7 million in both money and cryptocurrency. He presented himself as a legitimate cryptocurrency trader seeking short-term liquidity for trading or other business ventures. Kim falsely promised high returns and claimed low-risk investments to entice lenders.
Acting United States Attorney Patrick D. Robbins commented, "This case may involve the new world of virtual currency, but there’s nothing new about the defendant’s scheme to defraud." Robbins added that Kim's actions sent investor funds to offshore gambling sites instead of the promised investments.
FBI Acting Special Agent in Charge Dan Costin stated, "Mr. Kim deceived those who trusted him, exploiting their confidence to fund his personal gambling activities rather than the legitimate investments he offered his victims."
Evidence showed that in October 2017, Kim approached a victim via text message with an investment proposal he described as a "fairly modest operation." Despite promising low risk, he redirected almost all received funds to bitcoin sports betting sites abroad. Similarly deceptive tactics were employed with other victims through emails and formal agreements.
The jury acquitted Kim of one count of international money laundering. His sentencing is set for June 25, 2025. Each count of wire fraud carries up to 20 years in prison, while each count of money laundering carries up to 10 years.
Assistant U.S. Attorneys Noah Stern and Maya Karwande are leading the prosecution with assistance from several others. The FBI and IRS Criminal Investigation conducted the investigation.
