South Korea’s prosecution service has officially launched a dedicated investigative unit to combat cryptocurrency fraud and scams.
The new division, known as the Joint Investigation Unit (JIU) for Virtual Asset Crimes, operates under the Seoul Southern District Prosecutors’ Office and has been tasked with addressing illicit activities within the nation’s rapidly growing crypto sector.
The JIU was initially formed in 2023 as a temporary task force to tackle what authorities believed would be a short-lived surge in high-profile crypto-related fraud cases.
However, as cryptocurrency adoption continued to expand in South Korea, financial crimes linked to digital assets also surged. The increasing number of cases overwhelmed the unit, prompting the prosecution service to formally establish the JIU as a permanent division in early 2025, granting it greater autonomy and resources to intensify its crackdown on crypto-related crimes.
A launching ceremony was held in Seoul on February 27, 2025, to mark the official transformation of the JIU into a fully operational investigative body. The move signifies South Korea’s strengthened commitment to monitoring digital asset markets and safeguarding investors from fraudulent schemes.
Reports from Aju News and MBC News indicate that the JIU has been upgraded to a formal joint investigation department, reflecting its expanded role and responsibilities.
The unit is composed of public prosecutors from the Seoul Southern District Prosecutors’ Office, along with 11 financial regulators from the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS).
In total, the JIU will operate with 34 full-time staff members, many of whom have significant experience handling cryptocurrency-related fraud cases.
The unit has been assigned to investigate unfair crypto practices, including insider trading, market manipulation, and unregistered securities offerings. Since its inception, it has already indicted 74 individuals and arrested 25 suspects involved in various crypto-related financial crimes.
The JIU has already made headlines in recent months for its role in investigating the suspected scam coin Queenbee. The case led to the indictment of Jeon Seong-bae, a high-profile shaman known as Geon Jin, who was accused of handling illegal political funds from politicians and candidates during South Korea’s 2018 local elections.
The case underscored the increasingly complex nature of cryptocurrency-related crimes and the need for a dedicated task force to address them.
The newly formalized unit will be led by Chief Prosecutor Park Geon-wook, with the support of two deputy chief prosecutors.
As cryptocurrency fraud becomes more sophisticated and widespread, South Korean authorities are working to build a more robust crime response system. The Seoul Southern District Prosecutors’ Office has pledged to enhance its efforts in combating digital asset-related crimes, ensuring greater transparency and security in the country’s crypto markets.
With the rise of fraudulent schemes and regulatory concerns surrounding digital assets, the formal establishment of the JIU signals South Korea’s commitment to tackling crypto-related financial crimes with greater efficiency and effectiveness.
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