Crypto Crimes Cost $2.28 Bln In South Korea

According to estimates by the Ministry of Justice of South Korea, crimes related to cryptocurrency caused financial damage in the amount of 2.69 trillion won (about $2.28 billion) in the period from July 2017 to June 2019, The Korea Herald reports.

The ministry stated that 132 criminals and fraudsters associated with cryptocurrency were detained during the specified period and charged; another 288 were simply indicted without detention.

Despite the strict measures imposed against cryptocurrency criminals, the lack of clear rules for the exchange of cryptocurrencies has led to an increase in the use of quasi-anonymous or non-transparent accounts. With the prohibition of anonymity, the exchanges began to use the so-called “beehive accounts” to bypass regulation: they keep users' funds on their corporate bank accounts and keeping the identity of their users private.

The government proposed to stop this practice, but the court suspended this initiative, deciding that it would be inappropriate for the government to close the exchange’s corporate bank accounts.

Image courtesy of IFFLab