A South Korean bank employee embezzled $700,000 to purchase Crypto Assets, resulting in a total loss.

According to a report by the Korean Broadcasting Company (KBC), a loan manager at Gwangju Bank in South Korea embezzled $724,620 from the bank and used it for Crypto Assets investment. The bank stated that the unnamed manager stole the funds between May and November 2023, but the disappearance of the funds was only discovered in the second half of this year.

A spokesperson for Gwangju Bank stated: “During a recent review of the historical data on project financing loan interest, we discovered this embezzlement case. We will decide on the extent of disciplinary action to be taken after completing the internal audit.” The spokesperson mentioned that the employee has repaid the bank $105,581.

However, the employee's Crypto Assets investment does not seem to be going well. The bank stated that a loss of $619,100 “cannot be recovered” and will “write off this loss.” A spokesperson said that the employee “manipulated project financing loan rates for personal Crypto Assets investments.” Gwangju Bank has suspended the employee's position and filed a criminal lawsuit. The police are following up on the investigation.

Coincidentally, in June 2024, prosecutors charged a former assistant manager of Woori Bank with stealing funds from the corporate loan fund to frantically purchase Crypto Assets. The assistant manager worked at the Woori Bank branch in Gimhae, South Gyeongsang Province, where he forged loan documents and embezzled about $7.3 million from the bank. He claimed to have used most of the funds for Crypto Assets investment. The man also admitted that his Crypto Assets investment ended in failure.