South Korean court acquits ‘coin king’ in alleged 340 billion won crypto fraud case

A South Korean court has acquitted a crypto figure known in local communities as “coin king” and nicknamed “Jonbeo Kim” in a first-instance ruling over an alleged 340 billion won fraud case tied to two tokens, Podo Coin and Atube. Prosecutors had sought a 20-year prison term and requested forfeiture of about 18.8 billion won in illicit proceeds. The Seoul Southern District Court said the defendant had engaged in deceptive conduct about the projects’ actual status, but the fraud charge could not stand because prosecutors failed to prove that investors bought the tokens as a direct result of those misrepresentations. The court also said price-pumping allegations did not amount to deception. In the same case, two people from token issuer Enterblock were found guilty of obstructing business after submitting false materials to Coinone during listing maintenance reviews, though both received suspended sentences. The ruling is also notable for the court’s view that so-called scam coins do not have clearly defined legal elements under statutes or case law, meaning a token cannot be treated as fraudulent solely because it is labeled that way.