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South Korean Altcoin Issuer Arrested for Fraud
A recent incident in South Korea has led to the arrest of an altcoin issuer on fraud charges. The individual is accused of defrauding investors of a significant amount of money.
Arrest and Allegations
According to reports, the Seoul Southern District Prosecutors’ Office’s Virtual Asset Crime Joint Investigation Team apprehended the unnamed altcoin issuer on March 19. Prosecutors claim that the individual conspired with a market maker to deceive investors.
Market Maker’s Escape Attempt
The arrest follows a failed attempt by a market maker to escape via sea in December of the previous year. The market maker, known as Park, tried to flee to China but was intercepted by Coast Guard officials due to a storm.
Collaboration in Fraudulent Activities
Authorities believe that Park and the altcoin issuer collaborated between February 2021 and April 2022 to issue and promote fraudulent coins. The duo allegedly engaged in activities such as false data disclosure and market manipulation to attract investors.
Legal Proceedings
Park is currently under detention and facing trial at the Haenam Branch of the Gwangju District Court. He has been indicted on charges related to manipulating coin transaction prices and providing bribes to crypto exchange employees.
Continued Investigations
Prosecutors are continuing their investigations into the case, including looking into the involvement of other individuals, such as former executives from the crypto exchange Coinone. The incident highlights the growing scrutiny on altcoin issuers in South Korea and the prevalence of “scam coins” in the market.
Industry Response
South Korean financial institutions have committed significant funds to support projects aimed at achieving the country’s climate goals, amidst the ongoing challenges in the cryptocurrency market.
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.
