Prosecution Taking Charge
The fight against crimes connected to digital money is still being actively pursued by South Korean authorities. The usage of digital assets has grown more widely, which has led to an increase in crime. In light of this, South Korea has demonstrated a particular interest in the sector. Three people were recently detained by the authorities as part of an ongoing investigation into a multibillion-dollar fraud.
Local news source Chosun Iibo revealed the situation in an article on August 11. The three people are allegedly linked to a number of questionable FX trades and digital currency investments, according to the prosecution. The people are a part of a bigger investigation that the authorities are undertaking right now.
The Banks Declined to Comment
The three were charged with a number of offenses by the Daegu District Prosecutor’s Office. They were accused of creating fictitious businesses and operating a digital currency-related unregistered business model. The prosecution also claimed that the individuals provided banks with false information in order to complete transactions. One of the accusations was participation in a significant number of illegal foreign exchange operations. The three people are reportedly connected to the company that started these activities. In an effort to engage in arbitrage trading, the corporation transferred up to KRW400 billion, about $307 million abroad.
The company moved the money through a Woori Bank branch in Seoul, the capital of South Korea. Despite being the focus of the inquiry, the bank declined to comment on the situation. The arrest is the first in a bigger probe into a slew of bizarre overseas transactions totaling $3.4 billion. The inquiry is now being conducted by the Financial Supervisory Service, or FSS, South Korea’s integrated financial regulator.
The FSS said that Woori Bank handled 1.6 trillion won worth of unusual international transactions. Five bank locations hosted the transactions over the course of 14 months, from May 2021 to June 2022. Additionally, Shinhan Bank handled identical transactions totaling KRW 2.5 trillion between February 2021 and July 2022.
Source: https://www.thecoinrepublic.com/2022/08/20/south-korean-authorities-fighting-against-digital-crimes/