South Korea formalizes its crypto crime unit to combat fraud, insider trading, and price manipulation in the growing digital asset market.
Crypto Crime Unit Becomes Permanent
South Korea has officially launched the Joint Investigation Unit (JIU) for Virtual Asset Crimes, upgrading it from a temporary task force to a formal department.
The unit, run by the Seoul Southern District Prosecutors’ Office, was initially created in 2023 to tackle rising crypto fraud cases. Due to an overwhelming caseload, officials have now made it permanent.
Regulators and Prosecutors Join Forces
The JIU consists of 34 full-time staff, including public prosecutors and 11 financial regulators from the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS).
The unit will focus on insider trading, price manipulation, and crypto-related fraud, ensuring stricter oversight of South Korea’s digital asset market.
Cracking Down on Major Crypto Scams
Since its formation, the JIU has indicted 74 individuals and arrested 25 in connection to crypto fraud.
One of its high-profile investigations led to the arrest of shaman Jeon Seong-bae, who was accused of handling illegal political funds linked to a scam token named Queenbee.
South Korea Strengthens Crypto Fraud Response
The unit will be led by Chief Prosecutor Park Geon-wook, with two deputy chief prosecutors assisting.
With crypto fraud becoming more “sophisticated, intelligent, and globalized,” officials stated their commitment to building an effective response system to protect investors.
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