🌎 South Korean Bank Employee Embezzles $7.3M for Crypto, Loses Big

An employee of South Korea’s Woori Bank has admitted to embezzling $7.3 million from the bank to fund personal cryptocurrency investments, most of which ended in losses.

According to reports, the unnamed employee visited the West Gimhae Police Station in South Gyeongsang Province on June 10 to disclose their actions. Investigations revealed that this individual, in their thirties, used the stolen funds to invest in various cryptocurrency ventures, aiming for personal financial gain.

Unfortunately, the majority of these investments did not succeed, resulting in a loss of $4.35 million from the embezzled funds. In response, South Korean police have intensified their investigations into the theft, working closely with Woori Bank and are expected to apply for an arrest warrant soon.

The bank had already detected the missing funds through its internal monitoring systems before the employee’s confession. The stolen money was reportedly taken from accounts related to loan operations. A police spokesperson mentioned that the employee is fully cooperating with the ongoing investigation.

Woori Bank has committed to conducting an intensive audit and reviewing its internal control measures following this security breach. A spokesperson for the bank stated, “We will identify the problems via a thorough investigation and will prevent similar cases from recurring.” The bank is also planning to seek compensation from the employee for the embezzled funds.

Over the past year, South Korea has experienced a rise in cryptocurrency-related crimes. According to the Financial Intelligence Unit (FIU), there were 16,076 suspicious transactions reported in February. The FIU noted that the incidence of these crimes has surged by 48.8% since 2022.

In response to the increasing number of crypto crimes, South Korean authorities are considering the creation of a dedicated investigative unit to address these issues.