South Korea’s Board of Audit and Inspection has called for “strict disciplinary action” against a civil servant in Cheongju who stole over $416,000 in public funds for personal crypto investments. The unnamed official from Cheongju City Hall, responsible for student-related funds and subsidies, embezzled approximately 600 million won ($416,244) over seven years and invested in cryptoassets. The official has already faced criminal charges, but further punishment from the board is possible. Beginning in 2018, the civil servant siphoned money from public funds by forging documents to appear as subsidies for student work experience and submitted fake applications from students seeking public service work. Instead, the funds were used to buy cryptoassets on major exchanges.
The board also recommended “light disciplinary action” for five superiors, which could involve warnings and pay cuts, while strict measures may include dismissal, demotion, or suspension. In South Korea, dismissed public officials risk losing retirement allowances and having pensions reduced. Additionally, the city could levy further fines on the official, with “disciplinary surcharges” potentially reaching up to five times the embezzled amount.
An expert noted that economic uncertainty is driving more employees toward speculative investments, including cryptocurrencies. Recent prosecutions include a lawyer indicted for running a $7.9 million scam coin sales platform. In Cheongju, a 22-year-old military conscript was previously arrested for selling fake concert tickets to support his crypto-trading addiction.
*Twitter update: South Korean civil servant under fire for embezzling public funds for crypto investments #Cheongju #CryptoScandal*
