Hancom Chairman Faces Crypto Fraud Probe in South Korea

Software program firm Hancom Group chairman Kim Sang-cheol is underneath investigation for allegedly amassing unlawful funds price tens of billions of Korean received utilizing Arowana (ARW) tokens. South Korean prosecutors are actually investigating the case after a collection of investigations and raids that started in 2021.

The Arowana token is linked to Hancom With, a blockchain subsidiary of the Hancom Group. Reviews point out that the blockchain firm has invested considerably in Arowana. The token was launched on April 20, 2021 on the South Korean crypto alternate Bithumb. Inside half-hour, the ARW value rose from 50 received to 53,800 received, a leap of 1,075 instances.

Considerations and allegations about market manipulation

The token’s dizzying rise has raised issues about market manipulation. Though Hancom, Arowana and Bithumb denied the allegations, native police launched an investigation. Moreover, Kim was accused of embezzling big quantities of cash by the token.

In October 2021, leaked telephone calls allegedly revealed Kim’s involvement in establishing a secret slush fund. The recordings comprise suspected proof that Kim claimed possession of Arowana by a clandestine contract. Nevertheless, Arowana disputed the allegations, claiming that the decision recordings had been manipulated and edited with malicious intent.

South Korea’s stricter crypto rules

The investigation continued as South Korea strengthened its regulatory framework. Not too long ago, the nation handed its first person safety regulation to fight unlawful crypto actions. The nation’s Monetary Supervisory Service (FSS) plans to implement strict rules utilizing a joint response system to sort out rising crypto threats.

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Moreover, the Monetary Companies Fee (FSC) has licensed the Digital Asset Safety Basis, a company created to guard prospects’ belongings, particularly if an alternate goes improper. The muse will make sure the profitable return of belongings to prospects even when the inventory market collapses.