South Korean Authorities Prepare to Establish Cryptocurrency Crime Division

South Korean prosecutors are set to officially establish a specialized unit aimed at addressing cryptocurrency-related crimes and penalizing those involved in coin value manipulation and fraud.

According to Digital Immediately, the Joint Investigation Unit (JIU) for Digital Asset Crimes, operated by the Seoul Southern District Prosecutors’ Office, is expected to officially commence “in February at the earliest or in March at the latest.”

Crypto Crime: South Korean Prosecutors’ Not-So-New Unit

The unit originated as a temporary task force in July 2023. However, this new initiative will enable the prosecution service to effectively “elevate” the JIU, transforming it into an independent entity.

The headquarters of the South Korean Supreme Prosecutors’ Office. (Source: YonhapNewsTV/YouTube/Screenshot)

This initiative will necessitate legal adjustments. Citing unnamed officials, the media outlet reported that the Ministry of Justice is prepared to formalize the new unit’s existence in legislation.

The ministry will draft an amendment to the Enforcement Decree of the Prosecutors’ Office Act.

Additionally, the ministry’s actions may also “regulate the number of prosecutors” assigned to the unit. This, it is reported, will enable the prosecution to “address digital asset crime efficiently and systematically.”

The unit, as indicated by its name, comprises more than just prosecutors. Its members also include representatives from regulatory agencies such as the Financial Supervisory Service and the Financial Intelligence Unit (FIU).

Other governmental bodies are also involved, including the National Tax Service, the Korea Customs Service, and the Korea Deposit Insurance Corporation.

The nation’s stock exchange, the Korea Exchange, also has representatives within the group.

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Within a year of the JIU’s establishment in 2023, it had indicted 41 individuals, arrested 18 individuals, and seized, confiscated, or frozen assets worth 141 billion won ($97.5 million) in Bitcoin (BTC), altcoins, fiat, and other properties.

The unit’s workload has become increasingly complex. The JIU has handled numerous cases of suspected cryptocurrency fraud and price manipulation.

Its agents have, among other actions, seized high-value properties in Seoul and a collection of over a dozen luxury vehicles.

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— The Korea JoongAng Daily (@JoongAngDaily) January 28, 2025

Crypto Fraud on the Rise – Prosecutors

The government believes that the JIU has shown a “clear” ability to achieve results, the media outlet noted.

With “digital asset-related crimes” now “increasing,” Seoul has opted to act on the prosecution’s own request to convert the JIU into a “division” of the prosecution service.

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The Ministry of Justice is now seeking to “gather opinions” on its “revised enforcement ordinance” proposal.

It aims to conclude the consultation period by February 5 and officially launch “in February at the earliest or in March at the latest,” the government sources concluded.

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