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A South Korean Court Releases Hancom Group Chairman’s Son on Bail in Crypto Slush Fund Probe
A South Korean court has released the son of software giant Hancom Group’s Chairman on bail as prosecutors continue to probe an alleged “crypto slush fund.” Officials have been investigating allegations since 2021, when reports began surfacing surrounding the Hancom Group Chairman Kim Sang-cheol.
Allegations and Investigation
Kim Sang-cheol, prosecutors think, may be the “secret owner” of an altcoin named Arowana (ARW), supposedly the brainchild of a firm named Arowana Tech. The coin was listed on the Bithumb exchange in mid-2021 but has since been delisted.
Hancom Group and Hancom Office
Hancom is best known in South Korea as the developer of Hancom Office, a widely used suite of word processors, spreadsheets, and presentation software. The office suite was first released in 2001 and has since become a mainstay in the South Korean corporate world.
Legal Proceedings
The Criminal Division of the Seongnam Branch of the Suwon District Court arrested and indicted Kim’s 35-year-old second son. The court has granted bail to the younger Kim and imposed restrictions on his residence and movements ahead of the trial.
Charges and Alleged Activities
The younger Kim will be tried on charges of violations of the Act on the Aggravated Punishment of Specific Economic Crimes and breach of trust. Prosecutors allege that the younger Kim used the slush fund for personal purposes, including buying NFTs, trading, paying credit card bills, and buying goods from department stores.
Investment in Arowana Tech
Hancom With, Hancom’s blockchain arm, is a known backer of Arowana Tech. The affiliate invested in Arowana Tech in April 2021 with a view to building a blockchain-powered gold trading business.
The investigation is ongoing, with prosecutors uncovering evidence of alleged activities involving the younger Kim and individuals associated with Arowana Tech. The case continues to unfold as authorities delve deeper into the matter.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
