In a shocking turns of events, South Korean police has re-arrested Jonbur Kim Park, better known as South Korea's infamous "coin king" after finding on fresh fraud charges.
This news comes just one week after he was released on bail for a separate cryptocurrency scam case.
This latest development adds another chapter to one of South Korea’s most notorious cryptocurrency fraud cases, raising concerns about the rise of financial crimes in the nation’s crypto sector.
New allegations-Artube Coin scandal
On February 20, the Seoul Southern District Court issued an arrest warrant for Park, citing serious risk of evidence tampering and potential flight as justification for his arrest, according to South Korean news outlet KSB.
Prosecutors allege that between March 2021 and April 2022, Park and his accomplice, identified as Moon, were involved in the fraudulent issuance and listing of the Artube coin.
Prosecutors allege that between March 2021 and April 2022, Park and his accomplice, known as moon, were involved in the fraudulent creation and listing of the Artube Coin.
Authorities claim that the two men had manipulated the coin’s price and misled investors through false disclosures, resulting in a staggerign financial losses amounting to 68 billion won. Moon has also been arrested on similar charges.
Pattern of fraud and deception
This is not the first of Park's trouble with local trouble as he was previously caught by the South Korean authorities for his involvement with the Podo Coin, another fraudulent token through which he allegedly embezzled around 20 billion won.
Park was later released on bail in January 2024 while he waited for his trial. Unfortunately, further investigation revealed more fraudulent activities associated with Artube which led directly to his re-arrest.
Report claimed that Park and his accomplice engaged in systematic efforts to deceive unsuspecting investors. Their tactics included artificially inflating token prices, bribing exchange officials to list their scam coins and publishing misleading marketing content lure unsuspecting retail investors.
Additionally, Park often used his social media to portray a persona of a successful businessman, often flaunting his luxury cars and lavish lifestyle to gain the trust of his retail investors.
Unfortunately, many investors fell victim to his schemes, enduring massive financial losses.
The life of "Coin King" also displayed several features of being a bit of an escape artist. On the night of his arrest, local authorities tracked Park down to Jindo, an island on the southern part of South Korea where Park was attempting to flee the country on a five ton fishing boat.
His escape plan to escape to China was thwarted by adverse weather conditions, which forced the vessel to return ultimately resulting in his arrest.
After his arrest, he was later sentenced for violating smuggling laws, although he later had his sentence reduced on appeal.
The latest arrest is not Park’s first attempt at evading law enforcement. In December 2023, authorities apprehended him while he was attempting to flee the country on a five-ton fishing boat departing from Jindo, South Jeolla Province.
His plan to escape to China was ultimately thwarted by bad weather, which forced the boat to return, leading to his capture. He was subsequently sentenced to prison for violating smuggling laws, though his sentence was later reduced on appeal.
The recent rise of crypto scams in South Korea
Park’s arrest comes amid a growing wave of cryptocurrency fraud cases in South Korea. Earlier this month, prosecutors indicted six individuals, including a practicing lawyer, for allegedly orchestrating a $7.9 million crypto scam between May and August 2022.
The group is accused of issuing and selling fraudulent coins while falsely advertising them as legitimate investments. Prosecutors claim the suspects promoted the coins via YouTube and social media chat rooms, deceiving over 1,000 investors.
Investigators allege that the fraudulent coins were listed on overseas exchanges with lax requirements, with perpetrators falsely claiming that the tokens would soon be available on major South Korean trading platforms. However, authorities believe the group had no intention of operating a legitimate business and instead laundered their illicit gains through a fraudulent gift certificate company.
The proceeds were allegedly used to purchase luxury cars and entertainment services. Prosecutors also revealed that the indicted lawyer posed as a cryptocurrency expert on YouTube, playing a key role in money laundering and drafting false contracts to cover up the fraudulent operation.
These incidents are part of a broader pattern of rising crypto-related fraud in South Korea. In August 2024, South Korean law enforcement agencies uncovered a $60 million fraud case, marking one of the largest crypto scams in the country. In November 2024, authorities made another high-profile arrest, in which a scammer unwittingly targeted a police officer, ultimately leading to over 81 arrests linked to fraudulent cryptocurrency schemes.
The re-arrest of Park, known as the “Coin King”, underscores the escalating sophistication of crypto fraud schemes that continue to exploit investor trust through manipulation and deception.
As these deception becomes increasingly elaborate, they might errode the trust of investors in a time when the crypto sector is striving for greater legitimacy and mainstream acceptance.
Joy
