South Korean Prosecutors Request Hancom CEO Arrest Warrant in ‘Crypto Slush Fund’ Case

South Korean prosecutors have asked a court to arrest the Hancom CEO Kim Sang-cheol as part of a probe into an alleged crypto “slush fund.”

Per Newsis, the Criminal Division of the Seongnam Branch of the Suwon District Prosecutors’ Office said on July 17 that it wanted to try Kim (aged 71) on charges of violating the Specific Economic Crimes Act.

Hancom CEO Arrest: Crypto Slush Fund Probe Continues

The prosecution’s move comes days after police officers applied for a pre-arrest warrant for Kim.

The Seongnam Branch of the Suwon District Court will hold a hearing on July 18 to rule on the application.

The case has been rumbling on since 2021, when seemingly incriminating audio files first began circulating online.

The files seemingly caught Kim claiming that he “owned” an altcoin issuer named Arowana Tech.

He also appeared to explain that a “slush fund” had been created to help “people” “discuss ways to make money.”

Arowana Tech’s token is named Arowana (ARW). The coin made headlines when it won a listing on the Bithumb crypto exchange, after which the coin’s value jumped up from about $00.04 to just short of $46.

Arowana Tech has previously received investment funds from the Hancom affiliate Hancom With.

Prosecution officials say Hancom Group officials “attempted to create a slush fund” worth over $7.24 million with the coin

Police have previously raided the Hancom Group CEO’s office, as well as the Hancom With headquarters, and Kim’s home.

Former White House official is indicted for acting as South Korea agent https://t.co/JgsIeavp1x pic.twitter.com/7ns2v3Z6Mm

— Reuters Asia (@ReutersAsia) July 16, 2024

CEO’s Son Jailed for ‘Slush Fund’ Role

In December last year, police investigators arrested and indicted one of Kim’s sons, as well as the CEO of Arowana Tech.

A court has since found both guilty of “creating slush funds using Arowana tokens” with the Hancom scion sentenced to three years in jail earlier this month.

The Arowana Tech CEO, surnamed Jeong, was sentenced to two and half years in prison. Both are expected to dispute the court’s verdict at the High Court later this year.

Hancom is primarily engaged in software development. It is most famous for developing the Hangeul word processor and the Hancom Office Suite.