In a recent interview with the newspaper Hanguk Kyungjae, Lee Jeong-ryeol, the head of the Seoul Southern District Prosecutors’ Office’s joint crypto investigation unit, emphasized the need for courts to deliver faster justice to crypto offenders. Lee highlighted the current slow pace at which cases related to cryptocurrency crimes are processed, stating that this delay undermines trust in the virtual assets market, which is increasingly seen as a lawless zone.
Lee stressed the importance of expediting not only investigations but also trials and sentencing to restore faith in the market. He pointed out that regulatory developments and punishment measures within the crypto space have lagged behind, necessitating a more robust and efficient approach to tackling financial crimes involving virtual assets. The establishment of dedicated investigative units, such as the one led by Lee, reflects South Korea’s commitment to addressing the surge in cryptocurrency-related offenses and fraud cases.
Equating Crypto Crimes to Conventional Financial Fraud
Despite the unique nature of crypto-related offenses, Lee argued that at their core, they are no different from conventional financial fraud. He underscored the importance of leveraging new technologies to combat virtual asset crimes, emphasizing the need for a coordinated government response to address the challenges posed by fast-evolving financial and high-tech crimes. According to Lee, the essence of stealing property through deception remains unchanged, regardless of the technological advancements involved.
As the pioneer director of the joint crypto investigation unit established in July 2023, Lee leads a team of around 30 professionals from various government agencies, including the National Tax Service, the Prosecution Service, and the Financial Supervisory Service. The unit’s mandate involves investigating a wide range of cases, from high-profile art-themed altcoin scams to illegal over-the-counter (OTC) trade networks worth hundreds of millions of dollars. Despite encountering unprecedented legal challenges in their probes, the unit remains at the forefront of combating crypto-related crimes in South Korea.
Lee’s comments on the prevalence of scam coins in South Korea underscore the broader issue of fraudulent practices within the crypto space. He emphasized that scam coins, like traditional scams, primarily aim to deceive individuals for financial gain. Recent incidents, such as the arrest of an individual involved in an armed robbery targeting an OTC crypto buyer, highlight the risks associated with engaging in cryptocurrency transactions and the importance of swift justice in such cases.
Lee Jeong-ryeol’s call for swifter justice in crypto cases sheds light on the challenges posed by the growing prevalence of virtual asset-related crimes in South Korea. By prioritizing timely investigations, trials, and sentencing, authorities can enhance trust in the market and deter fraudulent activities. However, the evolving nature of crypto offenses necessitates a proactive and integrated approach to effectively combat financial crimes in the digital age.
