North Korean Defectors, Libyans Indicted for ‘Kimchi Premium’ Crypto Trading
South Korean prosecutors have arrested a group of foreign nationals – comprising North Korean defectors and at least one Libyan national – over suspected “kimchi premium”-type crypto trading offenses.
Per Yonhap, prosecutors have charged and detained three individuals, including a 44-year-old Libyan and a 43-year-old North Korean defector. The trio was held on charges of violating the Specific Financial Information Act and the Foreign Exchange Transactions Act.
Two other North Korean defectors, one aged 43 and the other aged 54, were charged with violating the Electronic Financial Transaction Act and the Specific Financial Information Act respectively. Both of these individuals were released on bail pending trial.
Current kimchi premium values – as trading volumes grow in South Korea, the discrepancy between domestic prices and those on overseas platforms has grown. (Source: Cryprice.com)
Prosecutors say the group spent over $76 million buying coins – and made “thousands” of token buys on overseas exchanges. Officers said the group worked on behalf of suspected “accomplices” and “clients” in Libya.
An official from the prosecution service was quoted as stating:
“We are continuing to investigate [suspected] accomplices. We will work hard to recover [the funds] and prevent similar crimes.”
The kimchi premium is a phenomenon whereby bitcoin (BTC) and altcoins trade on South Korean exchanges at significantly higher prices than on international platforms. This phenomenon tends to occur when demand rises among South Korean retail investors.
Some traders have sought to exploit this by buying coins from over-the-counter vendors and then “dumping” them on domestic platforms.
In the 2017 bull run, the premium peaked at about 55%. The
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