Multiple Korean banks investigated for questionable transactions totalling $6.5 billion

A few days after making their initial arrests in an investigation into questionable multibillion-dollar cryptocurrency-related transactions involving several branches of two South Korean banks, the police uncovered more abnormal transfers involving new businesses.

Local news site Korea JoongAng Daily reported on August 15 that the Korean Financial Supervisory Service (FSS) identified an additional $1 billion in questionable payments, increasing these transfers to $6.5 billion.

Information about the investigation

According to the report, a significant portion of this sum was moved from an unnamed cryptocurrency exchange before being sent abroad to Hong Kong, Japan, the United States, and China.

The transactions that prompted the FSS included those made by newly-public firms and those above $50 million earned by minor organisations, starting the agency to assume that some of them may be paper corporations utilising crypto-linked accounts to conduct unlawful foreign currency transfers.

In addition, the agency indicated that the transferred funds were used to import various things, including semiconductors, jewellery, and cosmetics, and that 65 firms participated in the transactions.

As previously reported by Finbold, South Korean police detained three persons suspected of establishing a criminal crypto trading enterprise, presenting fake financial information to banks, and engaging in suspicious foreign currency transactions.

Korea’s additional crypto issues

Late in July, South Korean police conducted raids on a number of local cryptocurrency exchanges, taking transaction records and other evidence as part of an investigation into the circumstances behind the Terra platform’s death.

Do Kwon, CEO of Terraform Labs, which caused significant investor losses when its stablecoin TerraUSD (UST) and native token Terra (LUNA) crashed, has finally given his first interview since the project’s $45 billion failure.

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