Joint Investigation Unit for Crypto Crimes in South Korea

The Seoul Southern District Prosecutors’ Office has initiated a formal joint investigation unit focusing on crypto-related crimes and fraud cases.

According to a report by Aju News, the unit is named the Seoul Southern District Prosecutors’ Office-run Joint Investigation Unit (JIU) for Virtual Asset Crimes.

This specialized unit will consist of 35 full-time employees experienced in addressing crypto crimes in South Korea, primarily including prosecutors and financial regulators from the Financial Services Commission and the Financial Supervisory Service. The unit is led by Chief Prosecutor Park Geon-wook along with two deputy chief prosecutors.

Originally established as a temporary task force in 2023 to manage the increasing number of crypto-related fraud cases, the office decided to formalize it into a joint investigation department due to the significant rise in such cases over the past two years, linked to rising crypto adoption in the country.

Since its formation in July 2023, the crypto crime task force has indicted 74 individuals and arrested 25 linked to unfair trade practices such as coin fraud and market manipulation.

A prosecution official stated, “As virtual asset-related crime methods become more sophisticated, intelligent, and international, we will establish an effective crime response system through close cooperation with relevant organizations.”

In December, the task force arrested a CEO of a coin management company for allegedly making 7 billion won ($4.8 million) through illicit crypto price manipulation. The unit also arrested a notable shaman named Jeon Seong-bae and tracked funds related to a scam coin called “Queen B.”

Additionally, a report indicated that a Chinese man was killed in a cryptocurrency transaction in Jeju, with suspects stealing 85 million won ($63,500) from the victim.