South Korea’s FSC to Probe Financial Institutions’ Links to KOK Coin Scandal, Cooperate More Closely With Investigators

South Korea’s Financial Services Commission said it will examine whether financial institutions were involved in the KOK Coin scandal, which caused about $1.9 billion in losses.

According to Edaily on October 8, FSC Chairman Kim Byoung-hwan made the remarks during a parliamentary audit of the National Assembly’s Political Affairs Committee, after Democratic Party lawmaker Lee Kang-il questioned him about KOK Coin. “If financial institutions were involved in the course of the business, we will look into it,” Kim said.

Kim said police in Ulsan and prosecutors are currently investigating the case, while the Financial Intelligence Unit is cooperating with investigative authorities through account-tracking data and suspicious transaction reports.

On calls for a full review of the response system for digital-asset crimes, Kim said he would discuss the matter with judicial authorities and work to ensure firmer coordination with investigators.

The KOK Coin case involves allegations that organizers recruited investors from 2019 by offering rewards for coin deposits and using a multi-level marketing investment structure before diverting the funds. Prosecutors estimate about 570,000 victims in South Korea and overseas, with losses reaching about $1.87 billion.