Cryptonews Altcoin News

South Korean Crypto Market Maker to Face Trial in $59.6M ‘Scam Coin’ Case

Legal

South Korea

Author

Tim Alper

Author

Tim Alper

About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

Author Profile

Last updated:

August 5, 2024

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

South Korean prosecutors are set to try a crypto market maker they think masterminded a $59.6 million altcoin-themed “scam coin” fraud.

They arrested the man, surnamed Park and nicknamed Jon Bur Kim, earlier this month on price manipulation-related charges.

Crypto Market Maker Will Stand Trial

Prosecutors think that Park, aka “the Coin King,” duped 18,000 investors and bought over a dozen “supercars” with the money he raised.

Park tried to flee South Korea by sea in December last year. However, a storm thwarted his escape bid when coast guards forced his China-bound vessel to dock in South Korea.

The market maker has already served time in jail for attempting to flee the country. But Park will now face fraud charges, Maeil Shinmun reported.

Prosecutors say Park bought imported luxury vehicles, including a Bugatti, and “showed off his wealth on social media.”

The Seoul Southern District Prosecutors’ Office-run Virtual Asset Crime Joint Investigation Team is heading the case.

Park and others were indicted on August 1. Prosecution officials say Park helped issue a “fraudulent virtual currency called Podocoin.”

He then went on to “manipulate” the token’s price, investigators allege. Detectives have raided Park’s addresses. They confiscated 13 cars, including a Bugatti Divo and a Ferrari LaFerrari.

Some of the cars seized in prosecution raids. (Source: Maeil Kyungjae/Screenshot)

Suspect ‘Tricked 18,000 Crypto Investors’

Prosecution officials say Park had “no intention of operating” a legitimate crypto “business.”

They say he “artificially inflated the price of Podocoin” by “distributing fake promotional materials” before selling “all 1 billion Podocoin tokens, making a large sum of money.”

Officials think Park “operated a dedicated price manipulation team” and social media channels.

Two other individuals have been charged with “submitting false information” to an unnamed crypto exchange to help “pass a listing review.”

Prosecution officials said the cars were “worth approximately $14.6 million” and were “hidden in a warehouse in the countryside.”