The Seoul Southern District Prosecutors' Office's Virtual Asset Joint Investigation Team has unveiled a complex web of crypto-related fraud involving a market maker surnamed Park, also known as Jon Bur Kim. Park, aged 43, faces serious allegations of orchestrating large-scale price manipulations and embezzlement.

Price Manipulation and Embezzlement

Prosecutors assert that Park embezzled approximately $14.5 million through his fraudulent activities. The suspect manipulated cryptocurrency prices significantly, leveraging his considerable social media following.

Dubbed the 'Coin King,' Park frequently posted images of his luxury sports cars and other high-priced possessions, adding to his notoriety.

The Bribery Allegations

Adding another layer to the scandal, prosecution officials claim that Park bribed executives and employees of an unnamed crypto exchange. This alleged bribery facilitated the manipulation of prices and the execution of other fraudulent activities.

The Podocoin Scandal

Park is also accused of issuing investors a non-existent altcoin named Podocoin. Prosecutors believe this fraudulent token was part of a scheme to deceive investors and siphon off funds. Park's prior criminal record further complicates this accusation. He had previously attempted to flee South Korea during a police investigation into another scam coin.

In December last year, Park tried to escape to China by sea on a fishing boat, but a storm thwarted his plans.

Previous Convictions

Park's dramatic attempt to escape prosecution ended when the Mokpo Coast Guard forced the boat he was on to dock. This incident led to a 10-month sentence for violations of the Smuggling Prevention Act. However, Park successfully appealed the verdict, resulting in a reduced sentence of seven months.

Collaboration with a Token Issuer

The investigation also points to a collaboration between Park and an unnamed token issuer from February 2021 to April 2022. Prosecutors allege that this duo schemed to issue and list so-called scam coins.

The Virtual Asset Joint Investigation Team arrested the alleged coin issuer in March this year, accusing them of defrauding investors out of approximately $16.1 million. The prosecution believes that a 'coin listing broker' was used to facilitate listing these fraudulent tokens on the exchange.