South Korea FSC to Probe Financial Institutions’ Role in KOK Coin Scandal, Tighten Cooperation 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 $1.88 billion in losses.

Edaily reported on October 8 that FSC Chairman Kim Byoung-hwan made the remarks during a parliamentary audit by the National Assembly’s Political Affairs Committee, responding to questions from Democratic Party lawmaker Lee Kang-il about KOK Coin.

“If financial institutions were involved in the business process, 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 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 closer coordination with investigators.

The KOK Coin case involves allegations that operators recruited investors from 2019 through coin-deposit rewards and a multilevel marketing scheme before diverting the funds. Prosecutors estimate about 570,000 victims in South Korea and overseas, with losses totaling about $1.86 billion.