South Korean Prosecutors: Civil Servant ‘Stole Public Funds to Buy Crypto’

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Tim Alper

Author

Tim Alper

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Last updated:

August 13, 2024 23:00 EDT

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South Korean prosecutors have indicted a civil servant for allegedly stealing public funds to buy crypto.

Yonhap reported that on August 13, the Cheongju District Prosecutors’ Office announced it had indicted and arrested an unnamed grade six civil servant.

Prosecutors think the civil servant stole 600 million won (around $438,000). They think the accused spent much of this money on crypto purchases.

South Korean Prosecutors: Suspect Forged Documents to Steal Funds

The accused works at Cheongju City Hall, the seat of the local government in Cheongju. The city is the capital and largest settlement in North Chungcheong Province.

The individual is aged in their forties, a prosecution spokesperson confirmed. Prosecutors charged them with embezzlement and the forgery of official documents.

Prosecutors said the individual was in charge of government affairs including student work placements and support projects for North Korean defectors settling in the city.

Officials say the civil servant forged “a variety of official documents over a period of approximately seven years starting in January 2017.”

Prosecutors claim the civil servant used these “forged” documents to embezzle funds. And they said the individual used this money to make personal “investments in cryptocurrencies.”

Accused ‘Bought Crypto and Stocks With Stolen Funds’ – Prosecutors

Officials say the civil servant also used the money to trade on the stock market and “pay off personal debts.”

A prosecution spokesperson said bailiffs had “seized” and impounded property and assets “such as apartments and vehicles” in a bid to “recover the proceeds of the crime.”

A Cheongju District Prosecutors’ Office spokesperson was quoted as saying:

“We will ensure our case has no loopholes so that the defendant is given a sentence appropriate to the nature of this crime.”

Several crypto-related crypto scandals have rocked the South Korean civil service in recent months.

In March, a Seoul civil servant was arrested on charges of committing crypto-related fraud and carrying out voice phishing attacks.

The nation was also stunned by the case of a public official who fled abroad after converting some $3.24 million worth of national health insurance funds to crypto.

And back in November 2022, a high-ranking civil servant was photographed trading Dogecoin (DOGE) on his mobile phone during an important local government meeting.