Chairman of Hancom Suspected of Creating Slush Funds Through Cryptocurrency... Search and Seizure Underway

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The police have launched a forced investigation into Kim Sang-cheol, chairman of the software company Hancom, who is suspected of creating slush funds.

On the 20th, the Anti-Corruption and Economic Crime Investigation Unit of the Gyeonggi Nambu Provincial Police Agency sent investigators around 9 a.m. to conduct a search and seizure at the Hancom Group chairman's office in Seongnam City, Gyeonggi Province, the headquarters of Hancom With, and Kim's residence.

The search and seizure operation ended at around 6:50 p.m. the same day, after approximately 10 hours.

The police reportedly secured documents and electronic information related to the cryptocurrency 'Arowana Token,' as well as Kim's mobile phone, through the search and seizure.

Kim is suspected of creating slush funds using Arowana Token.

Arowana Token is a cryptocurrency invested in by Hancom With, a blockchain-specialized company affiliated with Hancom.

This coin was first listed on April 20 last year, and within just 30 minutes, its initial trading price of 50 won surged 1,075 times (107,500%) to 53,800 won, raising suspicions of price manipulation.

Along with this, allegations have been raised that Kim used Arowana Token to create slush funds.

A recorded conversation released to the media in October last year contained details of a side contract naming Kim as the actual owner of Arowana Token and instructions to create slush funds using the token.

It also included mentions of consulting with the developers of Arowana Token on methods to create slush funds.

Additionally, Rep. Yang Gi-dae of the Democratic Party raised several suspicions related to Arowana Token during the National Assembly's Public Administration and Security Committee's inspection of the National Police Agency in October last year.

At that time, Hancom completely denied the allegations, but the police subsequently booked Kim on charges including embezzlement and have continued their investigation.

This content was produced with the assistance of AI translation services.