S. Korea indicts 20 people for illegal $170M crypto profiteering

South Korean prosecutors on Jan. 18 indicted 20 people for illegally transferring about 4 trillion won (about $3.2 billion) abroad to profit from premium kimchi, according to local news reports. .

Cryptocurrencies are generally sold at higher prices on Korean exchanges than on foreign exchanges, and the difference is called the kimchi premium.

Illegal cryptocurrency sale

The accused individuals used 256 South Korean bank accounts to transfer funds disguised as foreign trade payments to Hong Kong and other countries to purchase cryptocurrencies from abroad.

The individual then sold cryptocurrencies in South Korea at a premium, prosecutors allege. report.

The accused allegedly bribed a broker 20 million won (approximately $16,180) to seamlessly open a bank account and exchange currency at a cheap rate.

$170 million profit from illegal trade

The illegal trade allegedly took place from January 2021 to August 2022. During this period, Kimchi’s premium rate rose to his 5%.

Prosecutors estimate that the defendant made as much as 210 billion won (about $170 million) in illegal trading profits.

Authorities are currently working to seize 13.1 billion won (about $10.6 million) of illegal proceeds, according to reports.

Journalist at CryptoSlate

Monika first started reading about crypto in 2020 and has been digging deeper and deeper down the rabbit hole. She is always skeptical of new projects, but she seriously believes that the blockchain and cryptocurrency industry can bring relief to some of the most pressing issues of our time, such as financial inequality and transparency. Believe me. She is a voracious reader and her love of food equals her love of books. Monika was previously a reporter for Jumpstart Media and Forkast News.