South Korea has been hit with approximately $2.28 billion (2.69 trillion won) in financial damage due to cryptocurrency-related crimes within the last two years, according to a report from The Korea Herald.
According to the report, the country’s justice ministry has indicted and detained 132 suspects believed to be involved in one form of crypto scam or another, while another 288 suspects have so far been indicted but are not in detention.
The report also details the activities of smaller crypto exchanges that defied the orders of the justice ministry by operating “beehive” accounts used to circumvent the ban on anonymous crypto trading. Such measures allow the exchanges to manage investors’ funds using their bank accounts.
South Korea adopted a trading system in January 2019 that led to the abolition of anonymous bank accounts as part of the government’s anti-money laundering (AML) policy. However, these opaque accounts have presented exchanges with the ability to circumvent this trading system nonetheless.