South Korea has formally established a Joint Investigation Unit (JIU) for Virtual Asset Crimes under the Seoul Southern District Prosecutors’ Office. The unit will specialize in investigating and prosecuting crypto-related fraud and financial crimes, reflecting the country’s growing focus on regulating the digital asset space.
A Permanent Response to Rising Crypto Crimes
Originally launched as a temporary task force in 2023, the crypto crime unit was formed to handle the increasing number of fraud cases linked to digital assets. However, with the continued rise in crypto-related fraud and market manipulation, the Seoul Southern District Prosecutors’ Office decided to transform it into a permanent department dedicated to tackling financial crimes in the sector.
The JIU will be led by Chief Prosecutor Park Geon-wook and two deputy chief prosecutors, alongside 35 full-time employees experienced in crypto-related investigations. The team includes prosecutors and financial regulators from the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS).
South Korea’s Crypto Crackdown Intensifies
Since its formation in July 2023, the crypto crime task force has made significant progress, indicting 74 individuals and arresting 25 linked to various illicit activities, including market manipulation, coin fraud, and other financial misconduct.
“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,” a prosecution official stated during the launching ceremony.
Recent cases highlight the severity of South Korea’s crypto crime problem. In December 2023, the unit arrested the CEO of a coin management company who illegally made 7 billion won ($4.8 million) through crypto price manipulation. Authorities also arrested a notorious shaman, Jeon Seong-bae, and tracked fraudulent activities related to the scam coin ‘Queen B.’
Growing Security Concerns in the Crypto Sector
South Korea has been witnessing an increase in crypto-related crimes, ranging from fraud to violent offenses. A recent high-profile case involved the murder of a Chinese national during a cryptocurrency transaction in Jeju, South Korea, where suspects allegedly stole 85 million won ($63,500) before fleeing the scene.
To further enhance its enforcement efforts, South Korean authorities are also exploring additional measures, including the development of a crypto seizure system for tax evaders in some cities. These initiatives underscore the country’s commitment to ensuring transparency and accountability in the crypto industry.
With the launch of the Joint Investigation Unit for Virtual Asset Crimes, South Korea has reinforced its commitment to tackling financial crimes in the crypto space. As digital asset-related crimes grow more sophisticated, the new unit is expected to play a crucial role in strengthening oversight, prosecuting offenders, and enhancing investor protection in the evolving digital economy.
