South Korean prosecutors have indicted a civil servant for allegedly embezzling public funds to invest in cryptocurrency. The Cheongju District Prosecutors’ Office announced on August 13 that a grade-six official from Cheongju City Hall has been arrested and charged.
Alleged Embezzlement and Crypto Purchases
The accused, whose identity has not been disclosed, is suspected of stealing approximately 600 million won (around $438,000). Prosecutors allege that the official used a significant portion of this stolen money to purchase cryptocurrencies.
According to reports, the civil servant, who is in their forties, was responsible for various government duties including student work placements and support programs for North Korean defectors. Prosecutors allege that the individual forged numerous official documents over about seven years, beginning in January 2017, to facilitate the theft of these funds.
Additional Misuse of Stolen Funds
In addition to investing in cryptocurrencies, the official is accused of using the stolen money to trade stocks and pay off personal debts. Authorities have seized assets such as apartments and vehicles in an effort to recover the proceeds of the crime.
A spokesperson for the Cheongju District Prosecutors’ Office emphasized the commitment to ensuring a thorough case, stating, “We will ensure our case has no loopholes so that the defendant is given a sentence appropriate to the nature of this crime.”
Recent Crypto Scandals in South Korea
This case adds to a series of recent scandals involving South Korean civil servants and cryptocurrency. In March, a Seoul official was arrested for crypto-related fraud and voice phishing attacks. Additionally, a public official made headlines earlier this year for fleeing abroad after converting $3.24 million in national health insurance funds into crypto. Furthermore, in November 2022, a high-ranking civil servant was caught trading Dogecoin (DOGE) during a significant local government meeting.
