A South Korean government worker secretly diverted $342,000 (497.16 million Korean won) in public funds, using it for cryptocurrency trading and to settle personal debts.
Authorities discovered that the individual, referred to as “Person A”, had been running this scheme between November 2018 and May 2023. While a court sentenced them to five years in prison in December 2024, the ruling is currently under review by the High Court, which may modify the verdict.
The Board of Audit and Inspection (BAI) released an audit on March 11 that revealed previously unknown details, exposing the full extent of the fraud.
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One of the findings was that funds meant for disaster relief in North Chungcheong Province, which suffered from severe flooding in July 2023, were among the stolen amounts. The official managed to gain unauthorized access to multiple government seals, including the mayor’s, which they used to forge documents and approve fake transactions.
Person A created a bank account in the name of Cheongju City Hall and funneled public money into it. The fraudulent funds were then transferred into crypto investments and used to cover financial losses. Investigators found that the official manipulated financial records and submitted false project expenses without facing any scrutiny.
In response, authorities have ordered Cheongju City Hall to dismiss Person A and take disciplinary action against those responsible for failing to prevent the fraud.
Meanwhile, a joint effort by US law enforcement agencies has led to the seizure of $31 million in crypto linked to Uranium Finance’s 2021 security breach. How did the case unfold? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
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