Report: Korean banker arrested for $15 million loan fraud and crypto spending

A Woori Bank employee was reportedly arrested for embezzling $15 million by tampering with loan documents and using the stolen funds to purchase cryptocurrencies.

A Woori Bank employee was arrested on Monday after being accused of embezzling 18 billion rupees (about $15 million) by tampering with loan documents and then investing in cryptocurrencies.

According to local news reports, the employee, who managed corporate loans at a Woori Bank branch in Gimhae, South Korea, is said to have forged loan documents 35 times between July 2023 and May this year. The fraudulent loans were taken out in the names of 17 customers, including both individuals and companies.

The investigation found that the fraudulent activities were facilitated by “inadequate bank management and supervision,” such as staff processing urgent loan approvals in the absence of the authorized approver or the head office transferring loan funds directly to branches instead of to the borrower’s account.

Prosecutors reportedly froze around $3.2 million worth of assets through seizure and foreclosure measures, including deposits at crypto exchanges, banks and lending firms.

Crypto.news had previously reported that South Korea’s financial regulator is working on a system to monitor unusual crypto trading activities to improve transparency and oversight in the country’s crypto market. The agency has asked domestic trading platforms to share internal data with the system to ensure compliance with the new legislation, which comes into effect on July 19.