Bank Raided For Crypto-Related Illegal Foreign Exchange Transactions

Woori Bank - Subject of Prosecution

According to local news outlet Yonhap on September 22, the Daegu District Prosecutor's Office's Anti-Corruption Investigation Department searched and seized assets from the Woori Bank headquarters. The Prosecutor's Office also investigated bank employees and managers for unauthorized cryptocurrency exchange activities.

Prosecutors previously detained three Woori Bank employees on suspicion of creating fictitious businesses, engaging in cryptocurrency trading without disclosing it, providing banks with fake financial information, and carrying out $302 million in illicit currency exchange activities. At Woori Bank and Shinhan Bank, the regulators discovered almost $3.4 billion in illicit foreign exchange transactions involving cryptocurrencies.

Along with Terra-LUNA, prosecutors have looked into cryptocurrency exchanges and businesses for money laundering. Do Kwon and Daniel Shin are also being investigated for using phony firms to launder money to foreign accounts in Singapore.

Over the past two years, South Korea has emerged as the most prominent cryptocurrency market. However, it resulted in a sharp increase in illicit foreign exchange operations involving cryptocurrencies. According to government statistics, cryptocurrency affects 75% of the country's unlawful foreign exchange transactions.

Attorneys Requesting Do Kwon's Extradition

Do Kwon was added to the red list by Interpol at the request of the prosecutor's office in South Korea looking into the Terra-LUNA crash. After Singapore's police established that Do Kwon was no longer in the city-state, prosecutors theorized that he was on the run. The prosecution is seeking Do Kwon in South Korea due to arrest orders for violating the Capital Market Act.