- Six Chinese suspects were arrested in Jeju for stealing 1 billion won ($690,000) during a Tether cryptocurrency exchange at a hotel.
- The suspects, who claim to be victims, attacked a cryptocurrency trader after they accused him of making Tether stablecoins “disappear” in the transaction.
- South Korea’s Financial Services Commission (FSC) is moving forward with stricter regulations for cryptocurrencies, including stablecoins and exchanges, in response to a rise in cryptocurrency thefts.
Six were Chinese nationals He was arrested On January 16 on Jeju Island, South Korea, for masterminding one of the largest cases of theft in which a Tether cryptocurrency worth nearly 1 billion won, or $690,000, was stolen from a hotel. The accused, who is believed to have attacked a cryptocurrency trader known as A, is said to have stolen cash intended for the exchange, leading to a dramatic confrontation.
The plot to steal the rope is uncovered
West Jeju police said the group, which included a 40-year-old man known as B, attacked A after she accused the merchant of making Tether stablecoins “disappear” in the transaction. All defendants in the case claim that they were victims of assault while serious charges were brought against them.
They said that the merchant interfered in the bartering process, so they were forced to take the money as compensation. However, police stated that the group planned the attack from the beginning, with the aim of stealing funds after they transferred Tether from the wallet.
Two suspects were detained at the hotel, while three other suspects were arrested at Jeju International Airport. The last suspects were arrested at a money transfer service near the scene. Of the total amount, authorities confiscated 369 million won in cash from the group and the rest of the stolen money is still being traced. Police are still investigating the events and extent of the theft as well as the flow of Tether stablecoins.
FSC strengthens encryption regulations
In their testimony to police, the suspects said they intended to swap the Korean won for the Chinese yuan, but the trader convinced them to settle the deal with Tether. However, officials believe that the group wanted to steal the money and planned the operation with the help of the cryptocurrency exchange. They believe they transferred Tether from the wallet during the exchange to participate in the hack.
In response to these risks, South Korea’s Financial Services Commission (FSC) is now developing the second phase of cryptocurrency regulation in the country to strengthen consumer protection. Although details of the new framework have not yet been published, the FSC has announced that the upcoming regulation will cover stablecoins, cryptocurrency exchanges and market access, in recognition of the growing need for regulation in the growing cryptocurrency industry.
