South Korea Forms Crypto Crime Unit to Tackle Gangs

South Korean prosecutors are all set to officially launch a special “crypto crime unit” dedicated to tackling organized crypto criminal gangs including coin price manipulators, scammers, hackers and fraudsters. The unit, which has been named as Joint Investigation Unit (JIU) had started as a temporary task force in July 2023 and is going to be a permanent organization with this official launch.

The increasing prevalence of crypto crime has prompted Seoul to establish JIU as a permanent department and to facilitate this action, the ministry will draft an amendment to the Enforcement Decree of the Prosecutor’s Office Act.

This amendment may also involve adjusting the number of prosecutors assigned to the unit, which aims to respond to virtual asset crime more effectively and systematically. As per the reports, the unit consists of more than just prosecutors; it includes members from various regulatory bodies, such as the Financial Supervisory Service and the Financial Intelligence Unit (FIU).

Other government agencies, including the National Tax Service, the Korea Customs Service, and the Korea Deposit Insurance Corporation, are also involved. Representatives from the Korea Exchange, the nation’s stock exchange, are part of the team as well.

In the year 2023 when the unit was launched, it indicted 41 individuals, arrested 18, and seized, confiscated, or frozen 141 billion won (approximately $97.5 million) worth of Bitcoin (BTC), altcoins, fiat currencies, and other assets.

Additionally, the JIU’s efforts have grown increasingly complex as it deals with different cases of suspected crypto fraud and price manipulation. Its agents have also seized luxury buildings in Seoul and a collection of over a dozen high-end supercars.

The Ministry of Justice now intends to gather feedback on its proposed revised enforcement ordinance. They aim to conclude the consultation period by February 5, with plans to formalize the launch of the unit either in February or, at the latest, in March 2025.