Catenaa, Wednesday, February 05, 2025 – The CEO of a prominent South Korean peer-to-peer (P2P) lending platform is facing accusations of embezzlement after allegedly using client funds for personal cryptocurrency investments.
The accusations come from an investor who backed a real estate project with the CEO in 2018.
According to reports from NBN Media, the investor entrusted the CEO with funds for a residential construction project in Incheon, a major South Korean city. However, the investor claims the CEO diverted the funds and is using them instead for crypto purchases.
The investor, who had been promised interest on their investment, alleges that they never received the expected returns and later discovered that an additional 100 million won (approximately $70,000) they provided was not used for construction but for the CEO’s personal investments in cryptocurrency.
The CEO has reportedly returned the original investment and some interest, but the investor is determined to hold them accountable, citing a breach of trust.
The investor plans to file a civil lawsuit and a criminal complaint, accusing the CEO of embezzlement and deception. The P2P company has not publicly responded to these allegations.
The case has drawn attention as it highlights the risks of unregulated investments in the growing P2P lending and cryptocurrency sectors in South Korea.
Meanwhile, authorities are set to launch a joint investigation into virtual asset crimes by February or March.
