Authorities in Jeju Island, South Korea, have arrested six Chinese nationals for allegedly stealing 1 billion won (around $689,000) during a stablecoin exchange.
The incident took place on January 20 at a local hotel, as reported by Maeil Business Newspaper and the Jeju Western Police.
The Jeju Western Police reported that a group of Chinese nationals, including a man referred to as “B,” are suspects in a premeditated robbery involving the cryptocurrency Tether (USDT). They allegedly attacked a dealer, A, during a transaction after claiming the Tether had “disappeared” from their wallet. Investigators believe the group intentionally moved the stablecoins before assaulting A to steal cash. Two suspects were arrested at a hotel, three at Jeju International Airport, and one at a currency exchange. Authorities have recovered 369 million won of the stolen funds and are working to trace the rest.
During the investigation, the suspects denied charges, claiming their initial plan was to exchange 1 billion won for Chinese yuan, but were persuaded by individual A to use cryptocurrency instead. However, police have evidence from another currency dealer suggesting the group initially intended to use virtual currency. Investigators are examining virtual wallets, which can be accessed from different devices, to see if the suspects transferred Tether coins during the transaction. The police suspect that the group manipulated the exchange for a robbery.
This case unfolds as South Korea’s Financial Services Commission (FSC) advances to the second phase of its cryptocurrency regulations, which aim to enhance user protection. Kim So-young, Vice Chairman of the FSC, highlighted the necessity for strict rules in light of the rapid changes in the global crypto market, characterized by optimism and uncertainty. The upcoming regulations are expected to address stablecoins, the operations of cryptocurrency exchanges, and the entry requirements for businesses, although specific details have not yet been revealed.
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