In a recent interview with the South Korean newspaper Hanguk Kyungjae, Lee Jeong-ryeol, the head of the Seoul Southern District Prosecutors’ Office’s joint crypto investigation unit, highlighted the urgent need for courts to deliver swifter justice to crypto offenders. Lee expressed concern that cases involving cryptocurrency crimes are currently taking too long to process, leading to a lack of trust in the virtual assets market.
Lee emphasized the importance of regulation rollouts in combating crypto-related crimes and fraud. He pointed out that the slow pace of regulation and punishment has contributed to the virtual assets market becoming a lawless zone. To restore trust in this market, Lee stressed the need to speed up not only the pace of investigations but also trials and sentencing.
While acknowledging that crypto-related crimes present novel challenges, Lee argued that at their core, they are no different from conventional financial fraud. He highlighted the importance of an integrated governmental response to tackle the problem of fast-evolving financial and high-tech crimes. According to Lee, both investigative agencies and courts should leverage new IT technologies to effectively deal with virtual asset crimes.
Established in July 2023, the joint crypto investigation unit is South Korea’s first and only dedicated organization for cryptoasset investigations. Comprising around 30 professionals from various government-funded agencies, including the National Tax Service and the Financial Supervisory Service, the unit has been tasked with handling a wide range of cases involving cryptocurrency crimes.
Lee also highlighted the challenging nature of the unit’s work, noting that many of the cases they investigate are first-of-their-kind with no existing legal precedent. This makes it difficult for investigators to navigate through uncharted territory. Despite these challenges, Lee emphasized the importance of conducting investigations rapidly to help victims recover their funds.
In the wake of reports surrounding alleged South Korean “scam coins,” Lee emphasized that scam coins are no different from general scams. He pointed out that the operators of scam coins are primarily motivated by deceiving people to make money. This underscores the need for swift and decisive action to prevent such fraudulent activities in the cryptocurrency market.
The call for swifter justice in crypto-related crimes is a pressing issue that requires immediate attention. With the rapid evolution of technology and the increasing prevalence of financial crimes in the virtual assets market, it is crucial for investigative agencies and courts to work together to address these challenges effectively. By speeding up the pace of investigations, trials, and sentencing, trust and stability can be restored in the crypto industry, paving the way for a more secure and transparent market for all stakeholders.