16 People Arrested for Cryptocurrency Related Crimes in South Korea!

According to local media reports, South Korean authorities cryptocurrencies Arrested 16 people in connection with illegal foreign exchange transactions, as financial crimes committed using

So far this year, around 75% of violations of the country’s Foreign Exchange Act have involved cryptocurrencies. The Seoul Daily News reported that many of the crimes were linked to “hwanchigi,” an illegal practice of transferring money between South Korea and overseas.

Accused Persons in South Korea Are Accused of Making Profits by Taking Advantage of Price Differences Between Exchanges

The Hwanchigi transaction is the price difference between the prices of cryptocurrencies on Korean exchanges and exchanges around the world. Bitcoin It is linked to the “kimchi premium” that affects The Seoul Daily News made reference to this trade transaction in its report.

Two people have been prosecuted, seven have been fined, and the remaining seven are under further investigation, Newsis and the Seoul Daily News reported. A person prosecuted and known as “Mr. A” is suspected of starting several ghost companies to send money abroad.

In fact, Mr. A was importing cryptocurrencies from abroad and reselling them at a higher price in the South Korean market. He did this thanks to the much talked about “kimchi premium”.

The second suspect, “Mr. B”, received 400 billion won ($298.2 million) from 70 people who wanted to buy cryptocurrencies. Mr B then sent the money back abroad as an import trade through his own company.

Both prosecutions stem from investigations carried out by Seoul customs authorities since February.

*Not investment advice.