Bank employees in South Korea embezzle 10 billion Korean won for cryptocurrency trading resulting in over 50 loss
According to the report by South Korean media outlet Hanguk Kyungjae, a Yuil Bank employee suspected of embezzling around 10 billion Korean won since the beginning of this year has surrendered to the police, stating that the funds were invested in cryptocurrency and incurred losses exceeding fifty percent.
The West Sea Police Station in Korea recently revealed that abnormalities were detected in the loan monitoring department of Yuil Bank’s monitoring system during the loan process, prompting the employee to provide an explanation.
The Yuil Bank employee in his thirties voluntarily went to the police station on the 10th and confessed to the details of the crime. He worked at a branch of Yuil Bank and began embezzling loan funds since the beginning of the year through methods such as forging loan applications and deposit-related documents, with the embezzled funds amounting to approximately 10 billion Korean won (about 7.25 million US dollars).
During the investigation, he admitted to investing the embezzled funds in cryptocurrency, and due to investment failures, approximately 6 billion Korean won (about 4.35 million US dollars) has been lost.
Yuil Bank plans to claim damages against the employee and further strengthen internal audit and monitoring process checks.
A spokesperson for Yuil Bank stated:
“We will conduct a thorough investigation to identify loopholes in the loan execution process to prevent similar incidents from happening again. We will also impose strict penalties on the involved employee and enhance the internal control awareness of all staff.”
South Korea has always had a strong cryptocurrency trading culture. Previously, statistics showed that the trading volume of the top five cryptocurrency exchanges in Korea was close to surpassing the stock trading market.
However, according to the Financial Services Commission of Korea (FSC) statistics, Korean cryptocurrency investors are still predominantly retail investors, with up to 4.55 million people being small investors holding only less than $734 worth of cryptocurrency.
Cryptocurrency
Yuil Bank
Investment
Cryptocurrency trading
Embezzlement
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