# Financial regulator to cooperate with prosecutors to crack down on virtual asset crimes
[Blockmedia] Financial Supervisory Service Governor Lee Bok-hyun acknowledged Thursday that there might be victims of the Burger Coin issue and the controversy over the circulation of SUI raised by Rep. Min Byeong-deok.He also pledged to strengthen cooperation with the prosecution’s virtual asset joint investigation team.
Lee made the remarks during a National Assembly’s political affairs committee audit. He said that the Financial Supervisory Service was investigating the situation regarding the Sui Foundation and that there was a problem in that there may be victims.
Rep. Min had criticized the reckless listing of Burger Coin and the lack of investor protection at cryptocurrency exchanges. He cited Sui Coin as a representative example, noting that it had fallen nearly 70 percent since its listing in May.
The drop in Sui Coin price is the unclear circulation volume. Critics have alleged that the foundation staked and sold the reward coins. Rep. Min said that the issue of investor protection should be addressed at the supervisory authority level.
Financial Supervisory Service Governor Lee Bok-hyun, left, says he will cooperate with the prosecution to root out virtual asset frauds in a National Assembly meeting with lawmakers, including Rep. Min Byeong-deok of the Democratic Party of Korea, Friday at the National Assembly.
Lee said that he was aware of the various issues surrounding the Exchange Council, such as the claim that the circulation volume of SUI was not different from the number in the coin White Paper and was a number related to staking.
However, he said that the Financial Supervisory Service would look closely at strengthening cooperation with the prosecution investigation team through the virtual asset damage reporting center set up internally.
The prosecution launched and operates a joint investigation team dedicated to virtual asset crimes. Lee’s mention of the prosecution joint team while discussing the supervisory authority’s position on the Sui issue is noteworthy.
Comments by Lee Bok-hyun:
- “We are investigating the situation regarding the Sui Foundation.”
- “In conclusion, we are aware of the problem in that there may be victims.”
- “DAXA (Exchange Council: Chairman Lee Sir-goo, CEO of Upbit, Kim Jae-Jin, Standing Vice Chairman) has various other issues, such as saying that, unlike the past WeMix incident, it is not different from the number in the coin White Paper and is a number related to staking. “I know,” he replied.”
- “In conclusion, there may be victims. “We will look closely at strengthening cooperation with the prosecution investigation team through the virtual asset damage reporting center set up internally.”
Comments by Rep. Min Byeong-deok:
- “We should address the issue of investor protection at the supervisory authority level.”
- “The issue of the circulation volume of SUI is unclear.”
- “Critics have alleged that the foundation staked coins and then sold the reward coins.”
Why Burger Coin and Sui issues are problematic:
The Burger Coin and SUI issues are problematic for several reasons.
First, there is a lack of transparency and accountability in the cryptocurrency industry. This makes it difficult for investors to make informed decisions and to protect themselves from fraud.
Second, there is a risk of market manipulation in the cryptocurrency market. This is because there is little market regulation, and it is relatively easy for whales to manipulate prices.
Third, there is a risk of liquidity crises in the cryptocurrency market. The market is still relatively new and immature, and many cryptocurrencies have little liquidity.
In the case of Burger Coin and SUI, the main problem is the unclear circulation volume. This makes it difficult for investors to assess the value of the coins and to make informed investment decisions.
The allegation that the Sui Foundation staked and sold the reward coins is also a serious concern. This suggests that the foundation may be engaging in self-dealing and profiting at the expense of investors.
The Financial Supervisory Service’s investigation into the Sui Foundation and its pledge to strengthen cooperation with the prosecution’s virtual asset joint investigation team are welcome developments.
Analysis
Lee’s acknowledgment of potential victims in the Burger Coin and SUI issue is a significant development. It suggests that the Financial Supervisory Service is taking the matter seriously and is prepared to take action to protect investors.
The Financial Supervisory Service’s pledge to strengthen cooperation with the prosecution’s virtual asset joint investigation team is also welcome news. It shows that the authorities are working together to crack down on virtual asset crimes and protect investors.
However, it is important to note that Lee did not provide specific details about the measures the Financial Supervisory Service plans to take. It remains to be seen whether the agency will take any meaningful action to address the issues surrounding the Burger Coin and SUI issue.
The prosecution’s virtual asset joint investigation team is also relatively new. It is unclear how effective it will be in investigating and prosecuting virtual asset crimes.
However, it is important to note that the Financial Supervisory Service does not have much experience regulating the cryptocurrency industry. It is also unclear how effective the prosecution’s virtual asset joint investigation team will be in investigating and prosecuting virtual asset crimes.
Overall, Lee’s remarks are a positive step, but it is too early to say whether they will produce concrete results. Investors should remain vigilant and be aware of the risks of investing in virtual assets.
By James Jung jms@blockmedia.co.kr
