Baek Byung-yeul is a journalist at The Korea Times focused on cultural content, including films and cultural events in South Korea. You can contact him at baekby@koreatimes.co.kr to share your insights.
N. Korea-born ex-lawmaker's son faces 5-year prison demand over crypto fraud
North Korean defector Tae Yong-ho, who also was an elected lawmaker for the People Power Party, arrives for a hearing at the National Assembly in Seoul, May 8, 2023. Yonhap
By Baek Byung-yeul
Prosecutors on Tuesday demanded a five-year prison sentence for the eldest son of former People Power Party lawmaker Thae Yong-ho on charges of swindling about 1.4 billion won ($924,086) in a cryptocurrency investment scam.
The prosecution made the request during the first hearing of the case involving the defendant at the Seoul Central District Court. The younger Tae faces charges including fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.
"The nature of the crime is grave because the total damage reached 1.4 billion won and the defendant exploited the victims' trust in him," the prosecution said. "He continued his crimes through a Ponzi scheme, using money from new investors to pay off his existing debts."
The state prosecutors also noted that the damage has not been recovered yet and it is unlikely that the victims will get their money back anytime soon.
The defendant admitted to his crimes and asked the court for mercy during the trial.
"I admit my wrongdoing and I have cooperated faithfully with the investigation by submitting all my financial and cryptocurrency transaction records," he said through his defense lawyer during the final argument.
The younger Tae also expressed remorse in his final statement, saying he made a mistake and asking the court for leniency.
Prosecutors believe he used his father's prominent status to attract investments and pocketed the money without actually investing it in crypto assets.
Prior to the criminal trial, the same court ruled in a related civil lawsuit that the younger Tae must pay approximately 800 million won in compensation to the victims. The court scheduled the sentencing hearing for Sept. 2.
The defendant's father, Tae Yong-ho, famously defected to South Korea with his family in 2016 while serving as the deputy head of mission at the North Korean Embassy in the United Kingdom.
After arriving in Seoul, the former North Korean diplomat entered local politics and won a parliamentary seat in the 2020 general election representing the conservative party.