A dedicated investigation unit has been formally established in South Korea to tackle cryptocurrency-related crimes, following a surge in fraudulent activities in the sector.
Operated by the Seoul Southern District Prosecutors’ Office, the Joint Investigation Unit (JIU) for Virtual Asset Crimes will focus on combating scams, insider trading, and price manipulation.
Originally launched in 2023 as a short-term task force, the JIU was expected to address a temporary increase in high-profile crypto fraud cases.
However, as digital asset crimes continued to rise, the prosecution service decided to formalise the unit, granting it operational independence.
The decision reflects growing concerns over sophisticated financial crimes linked to virtual assets.
The JIU has been officially recognised as a joint investigation department, comprising 34 full-time members, including public prosecutors and 11 financial regulators from the Financial Services Commission and the Financial Supervisory Service.
Many members have prior experience in investigating complex crypto-related fraud, making the unit well-equipped to handle evolving threats in the sector.
At the launch event on 27 February 2025, officials outlined their commitment to targeting illicit practices within the crypto industry.
The Seoul Southern District Prosecutors’ Office stated,
“As fraudsters become more intelligent and globalised, we need a more effective crime response system.”
On 27 February 2025, a ceremony was held in Seoul, South Korea, to celebrate the launching of the Joint Digital Asset Crime Investigation Division. (Source: Yonhap TV News)
The JIU has already made significant progress in prosecuting offenders.
Since its formation, the unit has indicted 74 individuals and arrested 25.
One of its most notable investigations involved Queenbee, a suspected scam coin that drew widespread attention.
The case led to the indictment of Jeon Seong-bae, a well-known shaman also known as ‘Gonjinnbubsa’ or ‘The Construction Master’, on accusations of handling illegal political funds during South Korea’s 2018 local elections.
Jeon Sung-bae, 'The Construction Master' shaman, facing allegations of illegal political funding.
The unit is led by Chief Prosecutor Park Geon-wook, supported by two deputy chief prosecutors.
Authorities believe that with crypto-related crimes becoming increasingly sophisticated, the JIU will play a crucial role in maintaining market integrity and protecting investors.
By strengthening enforcement efforts, South Korea aims to curb fraudulent activities that threaten the credibility of its digital asset sector.
Scammers are targeting crypto investors through social media platforms like YouTube, WhatsApp, and Telegram, offering fake trading advice and fraudulent investment schemes. They lure victims with fake platforms, celebrity endorsements, and manipulated interactions, leading to significant financial losses.
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