South Korean Prosecutors Request Crypto Market Maker Arrest Warrant in Altcoin ‘Fraud’ Case

Altcoin South Korea

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Tim Alper

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Tim Alper

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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...

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July 17, 2024 23:00 EDT

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South Korean prosecutors have asked a court to issue an arrest warrant for a crypto market maker implicated in an altcoin-related fraud case.

Per Yonhap, the market maker – surnamed Park (43) and nicknamed Jon Bur Kim – is accused of price manipulation-related offenses.

South Korean Prosecutors: Fraudsters Bribed Crypto Exchange Officials

The Seoul Southern District Prosecutors’ Office’s Virtual Asset Joint Investigation Team says Park embezzled “a large sum of money” by orchestrating “large-scale” crypto “price manipulations.”

Park built up a considerable social media following, where he was dubbed the “Coin King.” He frequently posted pictures of his collection of luxury sports cars, as well as other high-price items.

A branch of the Seoul Southern District Court is set to interrogate the suspect before ruling on whether or not to issue the warrant.

Prosecution officials say Park embezzled “approximately” $14.5 million. They also say Park “bribed executives and employees” of an unnamed crypto exchange.

Prosecutors have also accused Park of “issuing a non-existent” altcoin to investors. They claimed that the token was named Podocoin.

Park has already served time in jail for attempting to leave the country illegally during a police investigation into an alleged “scam coin.”

In December last year, Park tried to escape to China by sea on a fishing boat. In a dramatic turn of events, a storm ended his flight, with the Mokpo Coast Guard forcing the boat to dock.

Park was sentenced to 10 months in prison for violations of the Smuggling Prevention Act. However, he successfully appealed the verdict, with a court reducing his jail term to seven months.

Ruling party requests police probe into YouTubers that started brawl at campaignhttps://t.co/T7zSouPkJE

— The Korea Herald 코리아헤럴드 (@TheKoreaHerald) July 17, 2024

Did Suspects Get Help from a Crypto ‘Broker?’

Prosecutors think Park and an unnamed token issuer worked together from February 2021 to April 2022.

They have previously said the duo schemed “to issue and list so-called scam coins.” The Virtual Asset Joint Investigation Team successfully arrested the alleged coin issuer in March this year.

The alleged fraudster, police think, tricked investors out of some $16.1 million. Prosecution officials have claimed Park and the unnamed “issuer” used a “coin listing broker” to get the coins listed on the exchange.