Seoul prosecutors chasing Do Kwon establish crypto investigations team

The Seoul Southern District Prosecutors’ Office announced on July 11 that it will launch the Virtual Asset Joint Investigation Unit at the end of this month. The unit will be dedicated to investigating crimes related to digital assets, a spokesperson for the office confirmed via text message.

See related article: From billionaire to Montenegro jail: The rapid rise and fall of Terra chief Do Kwon

Fast facts

• This is the first time a prosecutor’s office in South Korea will have an investigative unit dedicated to crypto-related crimes.

• The unit will investigate crypto crimes such as fraud, as well as examining legal issues such as the securitization of virtual assets. It will also train specialized investigators, the prosecutors’ office confirmed.

• The Seoul Southern District Prosecutor’s Office has been investigating the US$40 billion collapse of Terra-Luna, accusing Terraform Labs chief executive officer Kwon Do-hyeong of defrauding investors among other charges.

• The global illicit transaction volume of crypto rose to an all-time high of US$20.1 billion in 2022, according to blockchain data analysis firm Chainalysis.

• Meanwhile, South Korea’s legislative body recently passed a new bill that focuses on protecting the interests of crypto investors. This is also the first legal framework dedicated to crypto to be approved by the National Assembly.

See related article: How did Do Kwon move US$18 mln in stablecoins to ‘unfreezable’ tokens while in Montenegro jail?