Crypto market maker faces arrest warrant in South Korean altcoin fraud probe

South Korean authorities have requested a court issue an arrest warrant for a cryptocurrency market maker involved in an altcoin scam case.

According to Yonhap, the market maker surnamed Park (43) and nicknamed Jon Bur Kim is accused of price manipulation violations.

The Seoul Southern District Prosecutors’ Office’s Virtual Asset Joint Investigation Team alleges that Park embezzled “a large sum of money” by organizing large-scale cryptocurrency “price manipulations.”

Park has amassed a sizable following on social media, earning the nickname “Money King” as he regularly posts photos of his collection of luxury sports cars and other high-end items.

A branch of the Seoul Southern District Court will question the suspect before deciding whether to issue a search warrant.

Prosecutors allege Park embezzled approximately $14.5 million and alleged that she “bribed executives and employees” at an unnamed cryptocurrency exchange.

Prosecutors also accused Park of issuing a “non-existent” cryptocurrency to investors. They noted that the token was called Podocoin.

Park was previously sentenced to prison for trying to illegally flee the country during a police investigation into an alleged “money scam”.

Park attempted to flee to China by sea on a fishing boat in December last year. In an unexpected turn of events, a storm halted his flight, forcing the Mokpo Coast Guard to dock the boat.

Park was sentenced to ten months in prison for violating the Anti-Smuggling Act. However, she was successful in appealing the decision and a judge reduced her sentence to seven months.

Prosecutors suspect Park and an unnamed token issuer of collaborating from February 2021 to April 2022.

They previously stated that the duo planned to “issue and list so-called fraudulent coins.” In March this year, the Virtual Asset Joint Investigation Team successfully arrested the suspected coin issuer.

Police believe the alleged scammer defrauded investors of approximately $16.1 million. Prosecutors allege that Park and the unnamed “issuer” used a “coin listing agent” to list the coins on the exchange. This led to rapid price increases, allowing them to sell their assets for significant returns.

The case against Park also includes an investigation into her possible role in crimes attributed to the unnamed token issuer, with authorities working to determine the extent of her cooperation.

The case is part of a broader trend of scrutiny of altcoin issuers in South Korea, amid growing concerns about the proliferation of scam coins and celebrity involvement in low-cap altcoin disputes.