Crypto Exchange Bust

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Prosecutors have detained the executives of two cryptocurrency exchanges in Korea on charges of embezzling hundreds of millions of won in customers' money. This is the first arrest of its kind in Korea amid high suspicion of digital currency and cryptocurrency exchanges.

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Prosecutors have detained the owners and executives of two cryptocurrency exchanges for allegedly misappropriating customers' money. The Seoul Nambu District Prosecutors' Office has arrested four people on the charges of embezzlement and fraud. It's the first detention of cryptocurrency owners in Korea. They are facing the charges of illegally transferring hundreds of millions of won in customers' funds to their personal accounts. The prosecutors believe that they snatched the customers' money by facilitating electronic transactions between buyers and sellers without possessing any real cryptocurrency. One of the detained reportedly denied the allegations by saying that he transferred the money to buy virtual currency for his exchange. Prosecutors are considering requesting arrest warrants for the four and plan to expand the probe to other cryptocurrency exchanges as well.