{"id":89743,"date":"2024-02-11T22:01:40","date_gmt":"2024-02-12T03:01:40","guid":{"rendered":"https:\/\/ifintechworld.com\/?p=89743"},"modified":"2024-02-11T22:01:42","modified_gmt":"2024-02-12T03:01:42","slug":"suspected-south-korean-kimchi-premium-crypto-traders-cleared","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=89743","title":{"rendered":"Suspected South Korean \u2018Kimchi Premium\u2019 Crypto Traders Cleared"},"content":{"rendered":"
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South Korean prosecutors have suffered a blow in their efforts to shut down kimchi premium crypto traders \u2013 with 14 suspects cleared of wrongdoing.<\/p>\n

Officials accused 16 people of illegally remitting $3.2 billion worth of assets, including crypto, fiat, and goods.<\/p>\n

Newsis reported that two of the group were found guilty of minor offenses. A court gave one a 12-month jail sentence. The court gave the other a six-month prison term.<\/p>\n

South Korean Prosecutors Seek Second Trial<\/h2>\n

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Seoul Central District Court acquitted 14 of the individuals. The group included an individual prosecutors suspected of masterminding the operation.<\/p>\n

Prosecutors are trying to hunt down crypto traders they suspect of exploiting crypto exchange prices to the tune of around $6.5 billion.<\/p>\n

The District Court rejected the prosecution\u2019s case. The court stated the case was largely based on Supreme Court precedent rulings, rather than acts of law.<\/p>\n

But the prosecution service said it was \u201cdissatisfied\u201d with the court\u2019s ruling, and has already submitted an appeal request.<\/p>\n

The case will now proceed to the High Court, with prosecutors confident of securing a more favorable verdict.<\/p>\n

What Is the Kimchi Premium?<\/h2>\n

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The kimchi premium is a phenomenon that sees Bitcoin (BTC) and altcoins trade on South Korean exchanges at much higher prices than on international platforms.<\/p>\n

The phenomenon frequently occurs when demand rises in the South Korean retail investment market.<\/p>\n

Many traders have tried to exploit this. Typically, they buy coins from foreign over-the-counter vendors. They then effectively \u201cdump\u201d these coins on domestic platforms.<\/p>\n

During the 2017 bull run, the premium peaked at around 55%, before returning to rise near the 20% mark during the 2020-2021 bull run.<\/p>\n

The kimchi premium at the time of writing. (Source: Cryprice.com\/Screenshot)<\/figcaption><\/figure>\n

While this type of trading may be unethical, the South Korean legal community is divided over the issue of whether it actually violates national law.<\/p>\n

Prosecutors accused the group of making over $3 billion worth of such trades \u201cbetween April 2021 and August 2022.\u201d<\/p>\n

The prosecution told the court that the group had tried to disguise its activities by using a network of shell companies, and processing \u201cfalse trade payments.\u201d<\/p>\n

Seoul Central District Court. (Source: Kilchabi TV\/YouTube)<\/figcaption><\/figure>\n

However, the court ruled that it was difficult to prove without doubt that the accused had done anything wrong.<\/p>\n

The presiding judge also ruled that the Supreme Court precedents did not tackle the core issues at stake.<\/p>\n

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North Korea scraps all economic cooperation with South Korea -KCNA https:\/\/t.co\/XuFp1XgYYN pic.twitter.com\/YCmyaaVvtJ<\/a><\/p>\n

\u2014 Reuters (@Reuters) February 7, 2024<\/a><\/p>\n<\/blockquote>\n

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Instead, the judge said, the Supreme Court rulings focused on the guilt of individuals and their own wrongdoings \u2013 rather than the thorny issue of kimchi premium trading.<\/p>\n

A slew of new crypto-related laws is set to come into force on July 19 this year, with new punishments outlined for crypto market manipulation-related offenses.<\/p>\n<\/p><\/div>\n