Financial Supervisory Service Chief Acknowledges Lack of Capability to Address Cryptocurrency Fraud

Lee Chan-jin, the head of the Financial Supervisory Service, stated during the National Assembly's Political Affairs Committee audit on October 21 that it is difficult to keep up with the speed of on-chain cryptocurrency fraud with the current supervisory capabilities. This comment was made in response to a question regarding a recent incident where approximately 2.8 billion KRW was lost to a fake chain impersonating Dunamu's blockchain mainnet 'GIWA'. Democratic Party lawmaker Min Byung-deok explained that 2.8 billion KRW was transferred within half a day from the fake chain, and that money was withdrawn just 11 minutes after rumors of the GIWA mainnet's launch spread. He emphasized the importance of the speed of digital asset financial fraud and pointed out that the Financial Supervisory Service is not even aware of the scale of the damages. Lawmaker Min called for securing blockchain forensic personnel and establishing supervisory standards for major exchanges and blockchain networks. According to the 2024 Financial Intelligence Unit (FIU) investigation criteria, there are 7.78 million actual users of cryptocurrency in South Korea, with an average daily trading volume of about 6 trillion KRW. He also raised suspicions related to the KOK coin incident, stating that victims have not yet received compensation.

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