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Crimes involving digital currencies have resulted in a financial damage amounting to 2.69 trillion won ($2.28 billion) in South Korea over the past two years despite the government’s tough measures.

The Ministry of Justice announced Sunday that 420 were referred to court from July 2017 to the same month this year for 165 cryptocurrency-related fraud cases. Of them, 132 were convicted.

Amid rising fraudulent activities using cryptocurrencies, the Korean government and prosecution have upped the ante on the digital currency crimes. Justice Minister Park Sang-ki in January even warned of shutdown of cryptocurrency exchanges. Prosecutors set up a task force in March to strengthen the crackdown.

Still crimes involving virtual currencies have kept rising. From January to April, the Suwon District Prosecutors’ Office indicted and arrested 15 people for orchestrating illegal Ponzi scheme-based frauds to lure investors by promising high returns and pocketing 134.8 billion won. The Seoul Southern District Public Prosecutors’ Office indicted four people for bogus virtual currency transactions worth 50 billion won.

Park last Friday ordered prosecutors to carry out stronger clampdown as the crimes mostly targeted the weak amid worsening economic conditions.

The justice ministry said its move synchronizes with global fight with digital financial crimes. On June 21, the Financial Action Task Force (FATF), an intergovernmental organization engaging in a battle against money laundering, issued a joint statement on strengthening control over cryptocurrency exchanges to prevent digital currencies from being used in money laundering and other related crimes.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]