Ex-South Korean First Lady Kim Keon-hee Under Fire: Crypto Market Maker Probe Rocks Political and Financial Circles

South Korea's crypto scene just got a explosive new twist—and it's dripping with political drama.

Former First Lady Kim Keon-hee—already no stranger to controversy—now faces a high-stakes investigation into alleged ties with crypto market makers. The probe could send shockwaves through both the digital asset space and the country's elite corridors of power.

While details remain scarce, insiders suggest the investigation focuses on potential market manipulation during her time in the Blue House. If proven, this would mark the first direct link between South Korean political royalty and crypto's often-murky trading practices.

Regulators appear to be flexing new muscles after last year's sweeping crypto legislation. Nothing unites bureaucrats like chasing both headlines and trading volume—preferably in that order.

As the won wobbles against Bitcoin's relentless climb, one thing's clear: in Seoul, the lines between politics and crypto profits keep getting blurrier. Maybe someone should've stuck to traditional corruption methods—at least those come with well-established laundering protocols.

Former South Korean First Lady: Crypto Wrap Incoming?

OhMyNews says that the special prosecutors last week “requested a loan of the investigation records” in the Park case. The media outlet wrote:

“If the special prosecution team requested the investigation records related to Park, it cannot be ruled out that Kim Kun-hee or someone close to her was involved in the scam coin case, or Park’s alleged crimes, investigation, or trial.”

Kim is accused of corruption and peddling influence during her time as the South Korean First Lady, during the presidency of Yoon Seok-yeol.

Yoon was removed from office earlier this year after a failed attempt to declare martial law in December 2024.

Special prosecutor Min Joong-ki, the lead prosecutor in the Kim probe, also summoned Lee Jong-ho, a close associate of Kim’s, for questioning on July 21.

Prosecution Raid

Lee is the former chief of the investment firm Blackpearl Invest. At the end of last week, prosecutors conducted a raid on his home and car.

Prosecutors think Lee took a $58,000 bribe from an auto business executive who was accused of manipulating stock prices.

They believe Lee may have asked Kim to pressure members of the judiciary to ensure the executive was given a suspended sentence.

Prosecutors think Lee had access to the former First Lady’s bank accounts, and used these to process the funds connected to the case.

Park, meanwhile, was arrested and indicted along with a software development firm CEO surnamed Moon.

Prosecutors think the duo embezzled hundreds of billions of won by issuing and listing a suspected scam coin named Atube in 2021.

Scam Coin Probes

Park is also suspected of operating another alleged scam coin named Podo. Investigators think he embezzled 80 billion won “using the same method” earlier in 2021.

On December 18, 2023, Park attempted to flee the country on a boat to China. However, his efforts were thwarted by a storm.

The Coast Guard, fearing for the boat and its crew’s safety, intervened. Officers forced the boat to dock shortly after it departed, later finding Park illegally stowed on board.

Former South Korean President Yoon Suk Yeol skipped questioning by a special prosecutor investigating his December declaration of martial law, citing the need to prepare for a later hearing despite the risk of arrest https://t.co/OUHg3a7mBN

Park was active on social media prior to his arrest, where he openly flaunted his wealth and his large collection of imported supercars.

Prosecutors have since seized his vehicles, as well as thousands of dollars’ worth of crypto.

Park also has assets worth at least several hundred billion won, including domestic and overseas real estate holdings.

OhMyNews reporters said the Special Prosecution Team did not respond to their requests for comment.