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South Korean authorities have sought a court to issue an arrest order for a cryptocurrency market maker involved in an altcoin fraud case.
According to Yonhap, the market maker, surnamed Park (43) and called Jon Bur Kim, is accused of price manipulation violations.
The Seoul Southern District Prosecutors’ Office’s Virtual Asset Joint Investigation Team claims Park embezzled “a large sum of money” by arranging large-scale cryptocurrency “price manipulations.”
Park developed a sizable social media following, earning the nickname “Coin King.” He routinely shared images of his collection of luxury sports cars and other high-end stuff.
A branch of the Seoul Southern District Court is scheduled to question the suspect before deciding whether or not to issue the warrant.
Prosecutors allege Park embezzled approximately $14.5 million. They further claim Park “bribed executives and employees” at an unnamed cryptocurrency exchange.
Prosecutors also charged Park with “issuing a non-existent” cryptocurrency to investors. They noted the token was called Podocoin.
Park has already received a jail sentence for attempting to flee the country illegally during a police probe into an alleged “scam coin.”
Park attempted an escape to China by sea on a fishing boat in December of last year. In an unexpected turn of events, a storm stopped his flight, forcing the Mokpo Coast Guard to dock the boat.
Park was sentenced to ten months in prison for violating the Smuggling Prevention Act. However, he was successful in appealing the verdict, and a judge reduced his jail sentence to seven months.
Prosecutors suspect that Park and an unnamed token issuer collaborated from February 2021 to April 2022.
They earlier stated that the duo planned “to issue and list so-called scam coins.” In March of this year, the Virtual Asset Joint Investigation Team successfully detained the suspected coin issuer.
Police believe the alleged fraudster defrauded investors out of approximately $16.1 million. Prosecutors allege Park and the unnamed “issuer” utilized a “coin listing broker” to get the coins listed on the exchange. This resulted in rapid surges in prices, allowing them to sell their assets for substantial returns.
The prosecution against Park includes an investigation into his probable involvement in the crimes attributed to the unnamed token issuer as officials work to determine the degree of their collaboration.
The case is part of a larger trend of scrutiny directed at altcoin issuers in South Korea, which stems from growing concerns over the rapid rise of scam coins and the involvement of celebrities in low-cap altcoin disputes.