South Korean authorities have requested a court to issue an arrest warrant for a cryptocurrency market maker involved in an altcoin fraud case.

The individual, surnamed Park (43), known as Jon Bur Kim, is accused of price manipulation violations. The Seoul Southern District Prosecutors’ Office’s Virtual Asset Joint Investigation Team claims Park embezzled a significant amount of money through large-scale cryptocurrency price manipulations.

Park gained a sizable social media following, earning the nickname “Coin King.” He frequently shared images of his luxury sports cars and other high-end items.

A branch of the Seoul Southern District Court is scheduled to question Park before deciding whether to issue the warrant. Prosecutors allege Park embezzled approximately $14.5 million and bribed executives and employees at an unnamed cryptocurrency exchange.

Prosecutors also charged Park with issuing a non-existent cryptocurrency called Podocoin to investors. Park has already received a jail sentence for attempting to flee the country illegally during a police investigation into an alleged scam coin. He attempted an escape to China by sea on a fishing boat in December of last year. However, a storm forced the Mokpo Coast Guard to dock the boat, stopping his flight.

Park was sentenced to ten months in prison for violating the Smuggling Prevention Act. However, he successfully appealed the verdict, and a judge reduced his jail sentence to seven months.

Prosecutors suspect that Park and an unnamed token issuer collaborated from February 2021 to April 2022. They planned to issue and list so-called scam coins. In March of this year, the Virtual Asset Joint Investigation Team detained the suspected coin issuer.

Police believe the alleged fraudster defrauded investors out of approximately $16.1 million. Prosecutors allege Park and the unnamed issuer used a coin listing broker to get the coins listed on the exchange. This resulted in rapid price surges, allowing them to sell their assets for substantial returns.

The prosecution against Park includes an investigation into his probable involvement in the crimes attributed to the unnamed token issuer as officials work to determine the degree of their collaboration.

This case highlights growing concerns over the rapid rise of scam coins and the involvement of celebrities in low-cap altcoin disputes in South Korea.

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