South Korean Authorities Start Arresting Crypto Criminals

South Korean officials searched numerous local cryptocurrency exchanges in conjunction with an investigation into the Terra (LUNA) ecosystem collapse, and prosecutors detained the first in another crypto-related inquiry.

Three individuals were held for issues such as setting up cryptocurrency trading activities without the proper permissions, fabricating financial data, transferring it to banks, and performing suspicious $3.4 billion foreign exchange transactions.

According to a local Chosun Ilbo newspaper report, the allegations connect the three people arrested to a remittance platform that directed 400 billion won (close to $307 million) abroad via a multinational Seoul-based Woori Bank, earning money from arbitration.

Moreover, the report also stated that the arrested persons may have attempted to abuse the ‘kimchi premium’ or the gap in crypto prices in South Korean exchanges compared to exchanges outside the country.

According to the Financial Supervisory Service, the abnormal transactions totaled 1.6 trillion won (about $1.2 billion) and were carried out through 5 Woori Bank locations between May 2021 and June 2022.

Furthermore, the agency stated that it has determined that another 2.5 trillion won (approximately $1.9 billion) was allegedly moved through 11 Shingan Bank locations between February 2021 and July 2022.

Earlier in May, CoinCu reported that the Terraform Labs failure had compelled South Korea to form a Digital Assets Committee, whose responsibilities include developing regulations and overseeing the crypto sector until a government agency is established under the recently announced Digital Asset Framework Act.

It can be said that South Korea is very strict with crypto regulations and decisive action from the authorities.

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Harold

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