South Korea to probe financial institutions tied to KOK coin case

South Korea’s Financial Services Commission will examine whether financial institutions were involved in the KOK coin case, its chairman Lee Eog-weon said during a parliamentary audit on Oct. 8, according to Edaily. Lee said the case is under investigation by judicial authorities and that trial proceedings are underway at the Ulsan District Court. If financial institutions were involved in the business operations, the FSC would look into the matter, he said. Lee added that account-transfer issues are being handled by the Financial Intelligence Unit under the FSC, while suspicious transaction reports are being reviewed by investigative authorities. After Democratic Party lawmaker Lee Kang-il called for a swift probe, a fast-paced investigation and a full review of the response system for digital-asset crimes, Lee said he would discuss the matter with judicial authorities, Edaily reported. He also said the FIU’s core function is anti-money laundering and stressed the need to support and coordinate with criminal investigative bodies, adding that investigators are also working from the FIU office and that he would work to ensure close coordination with authorities in the KOK case. Prosecutors estimate the KOK coin case was a multi-level fraud scheme that affected 570,707 victims in South Korea and overseas, causing total losses of 2.5759 trillion won ($1.9 billion).