Altcoins
Cryptocurrency Market Maker Faces Arrest Warrant in South Korea Altcoin Fraud Investigation
South Korean authorities have asked a court to issue an arrest warrant for a cryptocurrency market maker involved in an altcoin fraud case.
According to YonhapThe market maker, surnamed Park (43) and named Jon Bur Kim, is accused of price manipulation violations.
The Seoul Southern District Prosecutors’ Office’s Joint Virtual Asset Investigation Team claims Park embezzled “a large sum of money” by organizing large-scale cryptocurrency “price manipulation.”
Park developed a large following on social media, earning him the nickname “Coin King.” He regularly shared images of his collection of luxury sports cars and other high-end items.
A branch of the Seoul Southern District Court is expected to question the suspect before deciding whether to issue an arrest warrant.
Prosecutors accuse Park of embezzling about $14.5 million. They also say Park “bribed executives and employees” at an unidentified cryptocurrency exchange.
Prosecutors also accused Park of “issuing a non-existent cryptocurrency” to investors. They noted that the token was called Podocoin.
Park has already been sentenced to prison for attempting to flee the country illegally during a police investigation into an alleged “currency scam.”
Park attempted a escape to China by sea on a fishing boat Last December, an unexpected event occurred: a storm stopped its flight, forcing the Mokpo coastguard to dock the boat.
Park was sentenced to ten months in prison for violating the Smuggling Prevention Act. However, he successfully appealed the verdict and a judge reduced his prison sentence to seven months.
Prosecutors suspect Park and an unidentified token issuer of collaborating from February 2021 to April 2022.
They had previously stated that the duo had planned to “issue and list so-called fraudulent cryptocurrencies.” In March this year, the Joint Investigation Team on Virtual Assets managed to arrest the alleged issuer of the cryptocurrency.
Police believe the alleged fraudster defrauded investors out of about $16.1 million. Prosecutors say Park and the unnamed “issuer” used a “cryptocurrency listing broker” to list the cryptocurrencies on an exchange. This led to a rapid rise in prices, allowing them to sell their assets for substantial returns.
Park’s prosecution includes an investigation into his possible involvement in crimes attributed to the anonymous token issuer, while authorities work to determine the extent of their collaboration.
The case is part of a broader trend of scrutiny directed at altcoin issuers in South Korea, stemming from growing concerns about the rapid increase in fraudulent coins and the involvement of celebrities in conflicts related to small-cap altcoins.