Woori Bank uncovered the scheme when its internal monitoring systems detected irregularities. However, the bank was unable to do something as it did not know the extent of the operation.
In a shocking turn of events, a banker in South Korea has embezzled $7.3 million from customer accounts to invest in crypto, hoping to cash in on the digital gold rush. The banker, who remains unnamed, worked at Woori Bank and has admitted to the crime at West Gimhae Police Station in South Gyeongsang Province.
According to local reports, the bank employee used the money to fund his investments in digital assets.
However, what he did not know is that not all crypto investments come back with profits as most of the tokens he purchased failed. As a result, he lost $4.35 million of the funds to the market downturn.
Woori Bank to Conduct Internal Audits
Woori Bank uncovered the scheme when its internal monitoring systems detected irregularities. However, the bank was unable to do something as it did not know the extent of the operation.
Despite this, the police said the employee went to the station “voluntarily” on June 10 to “confess the full details of the crime”. The case is currently ongoing at the West Gimhae Police Station with the banker fully cooperating with the police. Through the ongoing probe, the authorities found that the embezzlement involved multiple staff and was not a one-person scheme.
Authorities are working with the bank to understand the scope of the operation and plan to issue arrest warrants for the perpetrators once the investigation is concluded. In light of this development, Woori Bank said it would conduct an intensive audit as well as review its internal control measures to prevent future incidents.
“We will identify the problems via a thorough investigation and will prevent similar cases from recurring,” said the bank’s spokesperson. The bank plans to pursue compensation from the employee for the embezzled funds.
Not the First Case of Crypto-Driven Theft
Meanwhile, this is not the first time an employee has stolen money to invest in cryptocurrencies.
In 2022, an employee of South Korea’s Busan Bank embezzled about 1.48 billion won from customer funds. The stolen money was used to invest in crypto assets such as Bitcoin (BTC) and Ethereum (ETH).
These schemes are not limited to South Korea. Similar incidents have been reported in other parts of the world, including the United States.
In December last year, Amit Patel, a former financial manager for the Jacksonville Jaguars, was indicted for stealing over $22 million to fund his lavish lifestyle. He used some of the stolen funds to invest in crypto and spent the rest on luxury properties, including cars and a condo.
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