South Korean Prosecutors Indict Crypto Market Maker Park for $240M Fraud, ATT Token Plummets 100%

South Korean prosecutors have made a significant move in the ongoing crackdown on cryptocurrency-related fraud by arresting and indicting Jon Bur Kim, a prominent crypto market maker. Kim, whose real surname is Park, is accused of orchestrating a $60 million crypto scam involving a token named Podo Coin. This latest development comes as part of a broader effort by the newly formed Joint Investigation Unit for Virtual Asset Crimes (JIU), under the Seoul Southern District Prosecutors’ Office, to tackle virtual asset-related crimes.

Prosecutors allege that Park played a crucial role in the listing and issuance of another token, Artube (ATT), which they believe was used to defraud investors out of approximately 260 billion won ($179.6 million). att was previously listed on notable crypto exchanges, including Coinone, but its trading volumes and value have since plummeted. Coinone had designated ATT as a coin of concern due to the suspension of official community activities, inactivity of major businesses and services, and the failure to disclose related information in a timely manner. Following these concerns, Coinone ended trading support for ATT in early March, with withdrawal support following a month later.

In addition to Park, prosecutors have also arrested an individual surnamed Moon, identified as the CEO of the Artube operator. Officials believe that Moon and Park collaborated to earn criminal profits through false public disclosures and price manipulation after securing a Coinone listing in March 2021. Prosecutors have previously claimed that Park also manipulated Podo Coin prices to generate profits. Park was initially released on bail on January 22 this year, but the Seoul Southern District Court ruled that both Park and Moon should be detained due to the seriousness of the charges and the risk of evidence destruction or fleeing the country.

The JIU has been investigating Park for several years and has seized his assets, including a collection of imported supercars. In late December 2023, the South Korean Coast Guard intercepted Park on a sea vessel as he attempted to flee to China. The Coast Guard forced the fishing boat to dock in stormy weather, leading to the arrest of Park, the boat’s captain, and another intermediary on smuggling charges. This latest arrest and indictment underscore the authorities' commitment to cracking down on cryptocurrency-related fraud and ensuring that those involved in such activities are held accountable.