On March 19, the Virtual Asset Crime Joint Investigation Team of the Seoul Southern District Prosecutors’ Office apprehended a South Korean altcoin issuer, who now faces allegations of fraud. This arrest comes after the individual, known under the alias Jon Bur Kim but identified as Park, attempted to flee by sea in December last year but was intercepted by Coast Guard officials due to a storm.

Park, aged 42, gained notoriety on social media for flaunting his luxury sports car collection. He is currently detained and facing trial at the Haenam Branch of the Gwangju District Court. The charges against him include illegal manipulation of coin transaction prices, allegedly involving bribes to crypto exchange employees to inflate prices artificially.

Prosecutors claim that from February 2021 to April 2022, Park collaborated with another individual to launch and promote fraudulent cryptocurrencies, often dubbed “scam coins.” Their alleged deceitful practices involved false data disclosure and market manipulation to persuade investors of the legitimacy of their coins. It is suggested that they may have employed a “coin listing broker” to expedite the listing of these coins, leading to significant price surges and enabling them to profit substantially.

The investigation into Park's case extends to his possible involvement in the activities of the unnamed token issuer, as authorities seek to uncover the full extent of their collaboration. This incident adds to the ongoing scrutiny of altcoin issuers in South Korea, reflecting concerns over the proliferation of scam coins and the involvement of celebrities in controversies surrounding low-cap altcoins.

In a separate development, U.S. prosecutors announced plans to appeal a Montenegrin high court ruling on the extradition of Do Kwon, former CEO of Terraform Labs, to South Korea. This legal battle involves multiple nations seeking Kwon’s extradition on charges related to the collapse of the Terra ecosystem, including fraud and market manipulation. While the U.S. and South Korea both seek Kwon’s extradition, his legal team prefers extradition to South Korea due to family proximity and the potential for a 40-year prison sentence.