Prosecutors Recover Virtual Asset Electronic Wallet... Seize Criminal Proceeds Worth 7.6 Billion Won

156 People Expected to Recover Damages

The prosecution has recovered a concealed virtual asset electronic wallet for the first time and confiscated approximately 7.6 billion KRW in criminal proceeds.

On the 6th, the Cyber Crime Investigation Division of the Seoul Eastern District Prosecutors' Office (Chief Prosecutor Kim Young-mi) announced that they secured the secret recovery phrase (mnemonic code) of programmer A (50), who is accused of violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud, embezzlement, breach of trust), and manually and sequentially restored the deleted electronic wallet. Through this, they seized 1,796 Ethereum (worth about 7.6 billion KRW) hidden in A’s eighth account as criminal proceeds.

Previously, in July of last year, A was sentenced to 15 years in prison at the first trial for defrauding 14.6 billion KRW from 156 victims, but was acquitted regarding the acquisition of 1,796 Ethereum from the victim company. In the appeal trial in January this year, A was sentenced to 16 years in prison, including the acquisition of the 1,796 Ethereum from the victim company. However, the court ruled that confiscation was impossible because “the electronic wallet containing the Ethereum was deleted and could not be recovered.” The defendant has currently appealed, and the Supreme Court appeal trial is ongoing.

A prosecution official stated, “Once the verdict in this case is finalized, we will return the seized Ethereum to the victims of the fraud and do our best to restore the damages. We will continue to strive to promptly and thoroughly recover virtual assets obtained through crimes.”