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South Korea Prosecutors Raid Bank For Crypto-Related Illegal FX Transactions

South Korea’s Prosecutors conducted a “search and seizure” in Woori Bank’s headquarters for investigating crypto-related illegal foreign exchange transactions. South Korea’s Financial Intelligence Unit (FIU) is investigating commercial banks for $3.4 billion in illegal crypto-related transactions. Terra founder Do Kwon is also under investigation for money laundering in South Korea and the U.S. jurisdiction.

Prosecutors Investigate Woori Bank For Illegal Crypto Transactions

The Daegu District Prosecutor’s Office’s Anti-Corruption Investigation Department conducted a search and seizure in Woori Bank’s headquarters, reported local media Yonhap on September 22. The Prosecutor’s Office also investigated bank employees and a manager for illegal foreign exchange transactions of cryptocurrencies.

Prosecutors previously arrested three individuals from Woori Bank on allegations of setting phantom companies, operating crypto trading without reporting, false financial data submissions to banks, and $302 million in illegal foreign exchange transactions. Prosecutors believe a former branch manager was involved in illegal crypto-related foreign exchange transactions.

South Korea’s Financial Intelligence Unit (FIU) and Financial Supervisory Service are investigating crypto money laundering through banks between May 2021-June 2022. The regulators have uncovered over $3.4 billion in crypto-related illegal foreign exchange transactions at Woori Bank and Shinhan Bank.

Prosecutors have also investigated crypto exchanges and companies for the Terra-LUNA crash, as well as money laundering. Terra founders Do Kwon and Daniel Shin are also investigated for money laundering to offshore accounts in Singapore through shell companies.

Moreover, South Korea has become the leading crypto market in the past two years. However, it led to a massive rise in crypto-related illegal foreign exchange transactions. As per government data, 75% of illegal foreign exchange transactions in the country are crypto-linked.

Prosecutors Seek Extradition of Do Kwon

South Korea’s Prosecutor’s Office investigating the Terra-LUNA crash requested Interpol to place Do Kwon on the red list. Prosecutors believe he is on the run after Singapore’s police confirmed Do Kwon is no longer in the city-state.

Prosecutors seek to extradite Do Kwon to South Korea in relation to arrest warrants issued for violating the Capital Market Act.

Meanwhile, Terra (LUNA) and Terra Classic (LUNC) prices continue to dive after South Korea issued arrest warrants against Do Kwon and five others.

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 9/22/2022

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