An employee on the foreign exchange team of South Korea’s BNK Busan Bank allegedly embezzled 1.48 billion Korean won (US$1.1 million) in customer funds to invest in Bitcoin, local media reported.

See related article: Illegal foreign exchange trading with Bitcoin ‘Kimchi Premium’ probed in S.Korea

Fast facts

  • The employee, whose name was not released, reportedly embezzled the money over several occasions from June 9 to July 25 this year by depositing funds customers received from overseas into a personal account belonging to his/her romantic partner.  
  • Local media reported the employee invested the misappropriated funds in Bitcoin and other cryptocurrencies.
  • BNK Busan Bank will take legal action against the employee along with a self-audit, according to its disclosure.
  • There have been more than 10 cases of embezzlement perpetrated by bank employees this year in South Korea, where one employee at Woori Bank allegedly embezzled nearly 70 billion won (US$53.6 million) from 2012, only to be discovered earlier this year.
  • South Korea’s Financial Supervisory Service is currently preparing stricter guidelines for the internal control system within banks to prevent further incidents.

See related article: South Korea arrests man for allegedly stealing crypto based on personal data