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Korean Banker Arrested for $15M Loan, Cryptocurrency Spending: Report
A Woori Bank employee has reportedly been arrested for embezzling $15 million by manipulating loan documents and using the stolen funds to purchase cryptocurrency.
A Woori Bank employee was arrested on Monday after being charged with embezzling ₩18 billion (about $15 million) through manipulating loan documents and subsequently investing in cryptocurrencies.
According to local news reports, the employee, who handled business loans at a Woori Bank branch in Gimhae, South Koreaallegedly falsified loan documents 35 times over a 10-month period from July 2023 to May this year. The fraudulent loans were taken out in the names of 17 customers, including both individuals and businesses.
The investigation found that the fraudulent activities were facilitated by “inadequate bank management and supervision,” such as staff handling rush loan approvals in the absence of the authorized approver and head office sending loan funds directly to branches rather than to the borrower’s account.
Prosecutors reportedly froze assets worth about $3.2 million, including deposits at cryptocurrency exchanges, banks and lending companies, through seizure and hold orders.
Previously, crypto.news reported that South Korea’s Financial Supervisory Service is working on a system to monitor unusual cryptocurrency trading activities, aiming to improve transparency and oversight in the country’s cryptocurrency market. The agency urged domestic trading platforms to share internal data with the system to ensure compliance with new legislation that will take effect on July 19.