South Korea is taking decisive measures to combat the surge in cryptocurrency-related crimes and fraud cases by moving to establish its temporary virtual asset investigative unit as a permanent entity. The head of the Seoul Southern District Prosecutors’ Office’s joint crypto investigation unit, Lee Jeong-ryeol, emphasized the need for courts to deliver swifter justice to crypto offenders, as cases currently take too long to process. He highlighted the importance of restoring trust in the virtual assets market, which has become a lawless zone due to slow regulation rollouts and punishment for crypto-related crimes. Lee stressed the significance of speeding up investigations, trials, and sentencing to address the problem of fast-evolving financial and high-tech crimes.
The joint crypto investigation unit was launched in July 2023 and is the nation’s only investigative organization dedicated to crypto-related crimes. It comprises around 30 professionals from seven government-funded agencies and has been tackling a variety of cases, including a high-profile art-themed altcoin case involving police and prosecution corruption, as well as illegal over-the-counter trade networks worth approximately $478 million. Lee acknowledged the challenging nature of the unit’s work, as investigators often delve into uncharted territory with their probes. He emphasized the importance of an integrated response across the government to address the evolving nature of financial and high-tech crimes.
According to Lee, crypto-related crimes present courts with novel aspects but are essentially no different from conventional financial fraud, as the essence of stealing property through lies remains unchanged regardless of the technology involved. He believes that investigative agencies and courts should not find it difficult to deal with virtual asset crimes using new IT. Lee underscored the urgency of rapid investigations to help victims recover their funds and stressed the need for an integrated approach to combat the evolving landscape of financial and high-tech crimes. The unit has been handling first-of-their-kind cases with no existing legal precedent, including allegations surrounding Haru Invest and the crypto lending platform Delio.
Lee also discussed the issue of alleged South Korean “scam coins,” stating that at the core, scam coins are no different from general scams, as their operators aim to make money by deceiving people. The joint crypto investigation unit faces numerous challenges in investigating such cases, including a recent incident where a man was arrested for allegedly stealing almost $362,000 worth of cash in an armed robbery on an OTC crypto buyer. Lee emphasized the need for a swift and integrated response across the government to combat crypto-related crimes effectively. The unit aims to play a crucial role in restoring trust in the virtual assets market by addressing the challenges posed by the fast-evolving landscape of financial and high-tech crimes.
