South Korean Cryptocurrency Issuer Arrested for Alleged $16.1 Million Fraud
A cryptocurrency issuer from South Korea has been apprehended on charges of fraud, accused of swindling investors out of approximately $16.1 million. The Virtual Asset Crime Joint Investigation Team of the Seoul Southern District Prosecutors’ Office arrested the individual on March 19. This development follows the unsuccessful attempt of a market maker to escape by sea in December of last year. The market maker, known as Park and also referred to as Jon Bur Kim, had tried to flee to China on a fishing boat, but was intercepted by the Coast Guard due to a storm. Prosecutors believe that Park and the unnamed token issuer colluded between February 2021 and April 2022 to issue and list fraudulent coins. The token issuer allegedly used false data disclosure and market manipulation to deceive investors. Park is currently in custody and facing charges of illegally manipulating coin transaction prices. Authorities suspect that he bribed employees of crypto exchanges to artificially inflate prices. It is also suspected that a coin listing broker was involved in helping to list the coins. As the investigation continues, it is anticipated that more details about the case will be revealed. The incident is yet another example of the increased scrutiny facing altcoin issuers in South Korea, as fraudulent coins and controversies surrounding them have become a growing concern in the country.