Investigation into Crypto Fraud
In a significant investigation, South Korean authorities are scrutinizing the former President Yoon Suk-yeol and former First Lady Kim Keon-hee in connection with a major crypto fraud case involving Jon Bur Kim, known by his real name Park. Park, a recognized figure in the cryptocurrency market as a market maker and an avid collector of luxury sports cars, has been formally charged with fraud linked to cryptocurrency dealings. Allegations against him include creating and manipulating the prices of two fraudulent cryptocurrencies, through deceptive practices such as disseminating false information.
Connections to Corruption
Recently, prosecutors established a potential connection between Park’s fraudulent activities and Kim Keon-hee, who faces accusations of using her influence for corrupt purposes, including stock price manipulation. Yoon, who previously tried to impose martial law in December last year, was impeached and is now facing multiple corruption charges. Despite repeated court summons, he has declined to cooperate, prompting prosecutors to consider the issuance of an arrest warrant.
Broader Inquiry
The inquiry has broadened to include associates of Yoon and Kim, particularly focusing on Kim Sang-min, a former senior prosecutor, who is alleged to have received illicit payments from Park, the principal suspect in the fraud investigation. Notably, Park is implicated in the misappropriation of approximately 80.9 billion won (around $58.1 million) of investor funds. It is suspected that the money he provided to Kim Sang-min was intended to cover rental fees for vehicles that were part of Kim’s campaign for a parliamentary position, although he ultimately failed in the primaries.
Escalation of Investigations
This escalation in investigations aligns with earlier media reports indicating that the special prosecution team had sought access to files pertaining to Park’s fraudulent coin schemes. Prosecutors suspect that Park, in collaboration with a CEO referred to as Moon, engaged in extensive fraudulent activities, including issuing a dubious cryptocurrency called Atube in 2021, as well as orchestrating a scam known as a ‘rug pull’ involving another token named Podo Coin during the same year.
