South Korea’s Sole State-Owned Bank Employee Steals $7.3 Million for Crypto Investments, Loses $4.35 Million, and Confesses
An employee of South Korea’s Woori Bank has confessed to embezzling approximately $7.3 million in company funds for cryptocurrency investments.
According to News1 and The Korea Economic Daily, the unnamed employee turned themselves in to the police on June 10, admitting to the misappropriation of the funds.
The employee revealed that the stolen money was used to invest in cryptocurrencies, many of which ultimately resulted in significant losses.
The employee, reportedly in their thirties, worked at Woori Bank, which is South Korea’s second-largest nationwide commercial bank and the only state-owned bank.
Woori Bank noticed the missing funds through its internal monitoring systems. However, the employee voluntarily went to the Gyeongsangnam-do Gimhae Police Station on June 10 to confess.
Investigators indicated that the employee’s failed investments resulted in a loss of approximately $4.35 million.
A police spokesperson stated that they are conducting further investigations and collecting relevant data from Woori Bank. The employee is cooperating with the ongoing investigation and appears to have embezzled funds from accounts related to loans.
Media reports suggest that the police are expected to “apply for an arrest warrant.” However, an official declined to comment on whether the warrant would be requested. Woori Bank is also expected to seek compensation from the employee.
Woori Bank plans to conduct a thorough audit and examine its internal control protocols to understand how the embezzlement occurred. A bank spokesperson stated:
“We will identify the issues through a comprehensive investigation and take measures to prevent similar incidents in the future.”
Woori Bank is also an active participant in the cryptocurrency sector, with its investment arm holding shares in Dunamu, the operator of the Upbit cryptocurrency exchange.
Reportedly, Woori Bank is looking to launch products related to security tokens. Like many other South Korean banks, it is currently awaiting regulatory approval from Seoul to further develop its plans.
