ChainCatcher news, according to News 1, a Woori Bank employee in South Korea has been arrested and prosecuted for embezzling 18 billion won (approximately 13 million USD), of which about 15 billion won (approximately 10.84 million USD) was spent on purchasing virtual assets.From July of last year to May of this year, the employee forged loan documents 35 times in the names of 17 clients, including individuals and businesses, applied for fraudulent loans, and then transferred the loan amounts into acquaintances' accounts, totaling approximately 17.77 billion won.The prosecution seized 180 million won from the employee's residence and froze virtual asset exchange deposits, bank deposits, and rental deposits totaling approximately 4.5 billion won through asset forfeiture and collection preservation.

ChainCatcher news, according to Fortune magazine, a survey found that Yida Gao, the founder of crypto venture capital Shima Capital, created a secret offshore entity and transferred assets belonging to his venture capital firm to a company registered in his own name, without the knowledge of other investors in the company. Lawyer Eric Hess stated that this completely violates the conduct permitted under the Investment Advisers Act.Yida Gao has not been charged with any crime, and a representative of Shima Capital stated that the company would not comment on "such regulatory matters." However, according to an anonymous source, Yida Gao's poor performance and behavior have clearly violated the investor protection rules of the U.S. Securities and Exchange Commission (SEC), putting him in a difficult position for raising further funds. A representative from Shima Capital revealed that the company is currently not seeking financing.Shima Capital has also experienced a wave of high-level employee departures in recent months, including Chief Technology Officer Carl Hua and Research Director Alexander Lin, who left earlier this year to start their own venture capital firm, as well as Chief Operating Officer and Head of Compliance Hazel Chen. The departing executives did not respond to requests for comment. The latest SEC filings show that the firm manages approximately $158 million in assets—this figure is down from the $200 million raised in 2022.

ChainCatcher news, former CEO of Heartland Tri-State Bank, Shan Hanes, pleaded guilty on Thursday, admitting to embezzling $47.1 million for personal cryptocurrency purchases, which led to the bank's collapse.From May to July 2023, Shan Hanes made at least 10 wire transfers from the bank to cryptocurrency accounts, which was later acquired by Dream First Bank. Shan Hanes faces up to 30 years in prison. He is scheduled to be sentenced on August 8, 2024.

ChainCatcher news, South Korean prosecutors have begun a comprehensive investigation into former Kakao chairman Kim Beom-soo (phonetic) and Kakao executives for allegations of embezzlement of virtual currency and breach of trust.The prosecution has transferred the case to the Southern District Prosecutors' Office's Joint Investigation Team for Virtual Asset Crimes and conducted the first plaintiff investigation on the 11th. On that day, prosecutors inquired in detail about the main allegations of the plaintiff, the legal background, and the amount of damages. It is reported that the prosecution also requested the plaintiff to submit additional data regarding the cryptocurrency Klay transaction details of Kakao affiliate executives.On the 13th of last month, former Kakao chairman Kim Beom-soo and executives of Kakao affiliates were indicted for embezzlement and breach of trust. The reason is that Kakao created the virtual currency "Klay" through its subsidiary, raising funds by selling it to investors and embezzling the proceeds. If fraudulent transactions as defined by the Capital Markets Act are confirmed in the allegations, investors who invested during this period can seek compensation for losses caused by the criminal acts.

ChainCatcher news, the South Korean Financial Services Commission is conducting a comprehensive investigation into the allegations of fraud, embezzlement, and breach of trust against the South Korean crypto financial company Delio, which suspended deposits and withdrawals on June 14.Currently, the Financial Intelligence Unit (FIU) of the Financial Services Commission has obtained Delio's virtual asset operations and financial data. (Source link)

ChainCatcher news, according to South Korean media Money Today, the Seoul Southern District Prosecutor's Office's First Financial Investigation Division has indicted former Coinone executive Jeon on charges of corruption, and will conduct a pre-arrest interrogation of the suspect on the morning of the 10th.Jeon is accused of accepting bribes from virtual currency brokers Go and Hwang Aunt between 2020 and 2021 in exchange for listing "Kimchi Coin." One of the tokens suspected of bribing Jeon for the listing, P Coin, recently appeared in the kidnapping and murder case in Gangnam, Seoul. P Coin was created in 2020, and the main perpetrator, mastermind, and victim of the Gangnam kidnapping and murder case are all investors in P Coin. (source link)

ChainCatcher news, according to Yonhap News Agency, the minister in charge of the arrest warrant at the Southern District Court of Seoul has arrested Bithumb's actual controller, Jiang Zhongxuan (transliteration), on suspicion of embezzlement and dereliction of duty, stating that he "may flee and destroy evidence." Additionally, Zhao (transliteration), a representative of a non-listed company believed to be an associate of Jiang, was also detained.Previously reported, on January 10, the Korean National Tax Service began a special tax investigation into the virtual asset trading platform Bithumb, with the Seoul Regional Tax Office's Investigation Division 4 deploying dozens of investigators to Bithumb's headquarters located in the Gangnam District of Seoul to conduct an on-site tax investigation. (source link)

According to Chain Catcher news, CoinDesk reported that the U.S. Securities and Exchange Commission (SEC) filed a lawsuit on Thursday against two crypto advisory firms and their owners for allegedly misappropriating investor funds that they promised to invest in digital assets. The charges filed in the Manhattan federal district court state that Creative Advancement LLC and Edelman Blockchain Advisors LLC, along with their owner Gabriel Edelman, raised $4.3 million by providing and selling securities to four investors through the use of "false and misleading statements." (Source link)