South Korea’s Financial Supervisory Authority, the Financial Supervisory Service, found that since June 2022, $7.2 billion has been drained through “abnormal” foreign exchange transactions, most of which have been transferred through cryptocurrency exchanges.
According to the post Bloomberg ReportTransfers from Hana Bank, Kookmin Bank, Nonghyup Bank, Shinhan Bank, Woori Bank and seven other banks in the country were investigated.
Local media reports more that South Korean authorities have raided Woori Bank, based in Seoul, in connection with the investigation.
The investigation revealed a suspicious foreign currency transaction conducted through a commercial bank. It is currently assumed that the crime was targeting the “kimchi premium,” which hints that the local virtual currency market is more expensive than abroad.
The Anti-Corruption Investigation Department of the Daegu Public Prosecutor’s Office said its prosecutors were carrying out a search and seizure warrant for Woori Bank’s headquarters and investigating one of its employees accused of being involved in illegal foreign exchange transfer.
Bloomberg It was previously reported that South Korea is investigating Woori and Shinhan over the transfer of funds abroad worth $3.4 billion.
The investigation by the South Korea office is expected to be completed by the end of October.
More conclusions for the claim
It turned out that the majority of the money was transferred to Hong Kong, and 82% of the transfers were made in US dollars.
The FSA also identified an additional $680 million in “extraordinary” transfers. local reports It also established that the authorities had confiscated 259.8 billion won ($184.4 million).
Prosecutors had previously established several shell companies trading virtual assets, which went unreported, while providing false evidence to a bank, and remittances worth 400 billion won in foreign currency abroad. Three officials were investigated and arrested in connection with the shell companies.
South Korea has been cracking down on illegal crypto activity and intends to speed up new crypto rules, with thirteen proposals related to digital assets in the pipeline. The South Korean government has also issued an arrest warrant for Terra co-founder Do Kwon, following the collapse of the Terra (LUNA) ecosystem this year.