What To Know:
- Authorities moved the Lee Hee-jin investigation from Gangnam Police to the Seoul Metropolitan Police Agency as new Pica Coin–related fraud charges were added.
- Prosecutors allege Lee breached a 2020 token development and profit-sharing agreement, prompting lawsuits over unpaid settlements and escalating claimed losses.
- The Pica Coin probe follows earlier convictions and ongoing trials involving alleged price manipulation, false promotion, and large-scale investor losses.
The crypto fraud case surrounding Lee Hee-jin, aka in South Korea as the “Cheongdam-dong Stock God,” witnessed a new development. Authorities have transferred the investigation from the Seoul Gangnam Police Station to the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency.
Pica Coin Fraud, Lee Hee-jin’s Case Moves to Seoul Police
The transfer came in with the addition of fresh charges tied to the Pica Coin project, with claimed damages now reaching 28 billion won, or about $19.27 million. Investigators say the expanded inquiry centers on allegations of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, a law reserved for large-scale financial offenses.
At the heart of the case lies a collapsed business partnership. Lee and his former associate, identified by police as Mr. A, signed a contract in 2020 to jointly develop a digital token linked to art sculpture investment and asset fragmentation. The agreement outlined profit-sharing terms and settlement obligations. According to investigators, those commitments were never fully honored.
Mr. A, who served as a representative of the Pica Coin issuing entity, first filed a complaint in May last year. He accused Lee of failing to pay approximately 1.88 billion won in agreed settlement funds. After reassessing losses and contractual breaches, Mr. A filed an additional lawsuit. The total damages claimed now stand at 28 billion won.
For Lee, the allegations add to a long and troubled legal history. He was already on trial in a separate virtual asset case involving three tokens, including Pica Coin. Prosecutors allege that false advertising and price manipulation were used to extract nearly 90 billion won from investors. Lee was arrested in October 2023 and released on bail in March 2024. That trial remains ongoing.
The current investigation builds on a pattern that South Korean courts and prosecutors have confronted before. In February 2020, the Supreme Court sentenced Lee to three years and six months in prison for violating the Capital Markets Act. The ruling found that he made illicit profits by promoting unlisted stocks through broadcast programs, then selling shares ahead of retail investors.
Following his release, Lee returned to the public eye, again tied to high-risk financial ventures. Prosecutors say the same tactics reappeared, this time involved in the language of blockchain innovation and virtual assets.
Financial accountability has also become a central issue. In January 2020, Lee was ordered to pay a fine of 10 billion won and an additional surcharge of 12.26 billion won. While he paid 2.8 billion won, the remaining amount went unpaid for years. The Seoul Central District Prosecutors’ Office confirmed in late 2024 that it had fully recovered the outstanding 12.26 billion won after an extended asset-tracing effort.
That effort uncovered hidden cash and checks totaling 300 million won, virtual assets valued at 1.2 billion won, and luxury watches. Authorities seized properties, tracked borrowed-name corporations, and pursued civil actions to reclaim funds. Prosecutors said the recovery was intended to counter the perception that financial crime yields lasting rewards.
Lee’s public persona once stood in sharp contrast to his legal reality. He gained fame as a stock market commentator and cultivated an image of wealth through social media posts showing luxury homes and imported cars in Cheongdam-dong, one of Seoul’s most affluent districts. The image drew followers as well as scrutiny.
In October last year, Lee was indicted again, this time on charges of stealing nearly 89.7 billion won by manipulating coin prices through YouTube broadcasts after issuing virtual assets. He was granted bail in March and is currently standing trial without detention.
Also Read: China Busts “Tasting Card” Scam Linking Doorstep Gifts to Crypto Fraud
