According to a local media outlet, South Korean prosecutors are investigating “abnormal” foreign exchange transactions and cryptocurrency made the first arrests in a major investigation involving his investments.
Some Banks Also Blamed in Cryptocurrency Investigation in South Korea
The report said the three arrested were linked to a remittance platform that transferred 400 billion South Korean won (approximately $307 million) abroad through a multinational bank in Seoul.
According to Bloomberg’s report, the allegations against the three include “founding fictitious companies and running a crypto trading business without registration.”
The arrests are part of a large-scale investigation into two major local commercial banks Woori and Shinhan, which have transferred $3.4 billion worth of funds abroad, with possible links to “illegal cryptocurrency-related activities,” Bloomberg reported at the end of July.
According to local media reports, the accused may also have sought to profit from “Kimchi Premium”, which means that the price of Bitcoin is sold at a higher price on South Korean cryptocurrency exchanges than on global exchanges.
South Korea is squeezing the local crypto industry after the collapse of Terraform Labs earlier this year. In July, authorities raided the home of Terra co-founder Daniel Shin and the offices of seven crypto exchanges affiliated with the firm.
South Korea’s Financial Services Commission Chairman Kim Joo-hyun said on Thursday that financial regulators and lawmakers in the country also plan to speed up the review of new crypto bills.
*Not investment advice.
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