South Korean authorities have arrested four more people in connection with the alleged fraud at the now-defunct digital currency exchange JPEX.
The newly detained individuals — two men and two women — allegedly used false identities and violated the laws related to money laundering, according to the press release issued by the prosecution in Seoul. These arrests bring the total number of suspects detained in the case to 18.
The four people are accused of buying and selling digital currencies through the exchange between September 2017 and January 2018 using accounts held under fake names. This enabled them to evade the country’s capital gains tax. They allegedly laundered an estimated 267 million won (roughly $230,000).
JPEX was a Tokyo-based cryptocurrency exchange that launched in 2011 and abruptly shut down in January 2018. The exchange was shuttered after it was alleged to have engaged in fraud.
Following the closure of JPEX, many investors’ funds went missing. The Seoul Central District Prosecutors’ Office has been investigating the allegations since then.
Investigators identified 39 individuals suspected of wrongdoing. Of these, 18 individuals have been arrested for fraud and money laundering. Eight people have been indicted and their cases are ongoing. The other 11 individuals remain under investigation.
The Seoul Central District Prosecutors’ Office is collaborating with the Japanese Financial Services Agency (FSA) to investigate the case. The FSA has already imposed a travel ban on three individuals connected to the case.
