South Korea Probes Ex-First Lady Kim Keon-hee for Crypto Fraud Links

Prosecutors in South Korea are investigating a potential connection between former First Lady Kim Keon-hee and a notorious crypto market maker known as Jon Bur Kim, whose real surname is Park. The special prosecution team, tasked with probing allegations against Kim, has requested access to case files related to Park, who is suspected of fraud and involvement in "scam coin" operations. Park, along with several associates, is currently under legal investigation.

Kim is accused of corruption and influence peddling during her tenure as First Lady, under the presidency of Yoon Suk Yeol. Yoon was removed from office earlier this year following a failed attempt to declare martial law in December 2024. The special prosecutor, Min Joong-ki, has also summoned Lee Jong-ho, a close associate of Kim, for questioning. Lee, the former chief of the investment firm Blackpearl Invest, is suspected of taking a $58,000 bribe from an auto business executive accused of manipulating stock prices. Prosecutors believe Lee may have used his influence to pressure judicial members to ensure the executive received a suspended sentence, with access to Kim's bank accounts to process the related funds.

Park, who was arrested and indicted along with a software development firm CEO surnamed Moon, is suspected of embezzling hundreds of billions of won by issuing and listing a suspected scam coin named Atube in 2021. He is also suspected of operating another alleged scam coin named Podo, embezzling 80 billion won earlier in 2021. Park attempted to flee the country on a boat to China in December 2023 but was thwarted by a storm and intercepted by the Coast Guard. Park's social media presence prior to his arrest showcased his wealth and collection of imported supercars, which have since been seized by prosecutors along with thousands of dollars' worth of crypto and other assets worth several hundred billion won, including real estate holdings.

The investigation into Kim Keon-hee and her potential involvement in crypto market manipulation highlights the broader scrutiny of political figures and their associates in South Korea. The probe underscores the complexities of financial crimes and the potential for high-profile individuals to be implicated in such activities. The ongoing legal proceedings and the seizure of assets indicate the seriousness with which authorities are treating these allegations, aiming to uncover the full extent of the alleged wrongdoings and hold those responsible accountable.