South Korea Grapples with Crypto Corruption: Flood Relief Funds Misused
by aria-crypto.com
March 12, 2025 at 06:06
South Korea Grapples with Crypto Corruption: Flood Relief Funds Misused
A South Korean civil servant has been implicated in a scandal involving the embezzlement of 497.16 million Korean won ($342,000) from public funds, including flood relief donations, which were redirected to personal cryptocurrency investments. The fraud unfolded in Cheongju, the capital city of North Chungcheong Province, where significant flood damage occurred in July 2023, resulting in 19 fatalities in the province alone. The official, a grade-six civil servant, used forged documents and unauthorized access to the mayor's seal to create a fraudulent bank account under Cheongju City Hall's name.
The embezzled funds were siphoned off through this account and subsequently spent on cryptocurrencies and to settle the official’s personal debts, pointing towards possible previous poor investment decisions. This misuse of vital funds designated for flood recovery only emerged through an audit by the Board of Audit and Inspection, which also revealed the official had exploited several seals belonging to city hall and third-party businesses to bypass financial controls. Ultimately, the civil servant was sentenced to five years in prison, a decision now under review by the High Court, which holds the authority to amend the punishment.
Cheongju City Hall has been instructed to terminate the official's employment and take disciplinary actions against other involved parties, as per the board's findings. The case exposes significant lapses in financial oversight within the city's administration, highlighting an urgent need for stricter security and verification processes to prevent future embezzlement incidents.
Read more
>> Russia's Central Bank Initiates Crypto Investment Trials: A Strategic Move Amid Economic Sanctions
In response to international sanctions, Russia's Central Bank has unveiled a plan to allow a select group of investors to engage in cryptocurrency trading under a controlled experimental legal regime (ELR). Thi...
>> SEC Postpones Key Decisions on Dogecoin and Other Cryptocurrency ETFs Amid Regulatory Review
The US Securities and Exchange Commission (SEC) has again postponed its decision on the approval of spot exchange-traded funds (ETFs) for cryptocurrencies including Dogecoin, XRP, Solana, and Litecoin until May...
2 hours ago
>> SEC, Crypto, and Bloomberg Insights: Analyzing the Delays in ETF Approvals
The U.S. Securities and Exchange Commission (SEC) has once again deferred its decision on approving crucial crypto exchange-traded funds (ETFs) including those for Litecoin, Dogecoin, Solana, and XRP. According...
2 hours ago
>> How US Bitcoin Policy Impacts the Financial Market and Consumer Prices
In the midst of ongoing economic pressures including new tariffs and market volatility, recent U.S. policy decisions surrounding Bitcoin are rapidly reshaping investor actions and broader financial dynamics. Th...
3 hours ago
>> EU, Bybit, and OKX Spotlighted in Broad-Scale Probe Over $1.5 Billion Crypto Heist
The European Union is currently investigating crypto exchange OKX regarding its potential role in laundering $1.5 billion stolen from Bybit by North Korea's Lazarus Group. This inquiry examines whether OKX's We...
>> Crypto Expansion Gains Momentum with PayPal's PYUSD in Mesh's $82M Series B Boost
Crypto payments company Mesh has successfully raised $82 million in a Series B funding round to enhance its blockchain-based global settlement network. This funding round was led by Paradigm and saw contributio...
3 hours ago
>> US Crypto Clampdown: Billions in Airdrop Profits Lost
US crypto investors have missed out on between $1.84 billion to $2.64 billion in airdrop profits from 2020 to 2024 due to stringent regulations and geoblocking, according to a new report by DragonFly. The US go...
>> FIU Approves Coinbase for Crypto Operations in India: A Strategic Re-entry
Coinbase has officially registered with India's Financial Intelligence Unit (FIU), signaling its return to the Indian market after a two-year hiatus. This move is part of Coinbase’s broader strategy to expand i...
>> Sony and Bitcoin Innovate as Line Introduces Blockchain Mini-Apps to Millions
Line, Japan's leading social media platform, has teamed up with Sony's Soneium blockchain to deploy blockchain-based mini-apps for its vast user base of 200 million. This initiative is designed to enhance user ...
6 hours ago
>> SEC Delays Impact Bitcoin's Surge as Market Eyes $82K Amid Legislative Support
Bitcoin recently surged to $82,000 spurred by SEC's delayed decisions on ETFs for major cryptocurrencies like XRP, Dogecoin, and Litecoin, coupled with legislative moves by Senator Cynthia Lummis. Her re-introd...
6 hours ago
All the latest crypto news in one place
Stay informed and up-to-date on the market's latest news with our Terminal's News Aggregator with curated news articles and analysis from over 50 sources, including the crypto's biggest publications.
Launch Terminal
