Former NH Bank Manager Accused of Embezzlement Claims He Lost Everything in Crypto Investments

Former NH Bank Manager Accused of Embezzlement Claims He Lost Everything in Crypto Investments

A former loans manager at South Korea's NH Bank has come forward to say he "lost everything" after allegedly embezzling company funds to invest in cryptocurrencies. The manager, referred to only by his surname Kim, is accused of stealing a staggering $12.5 million in loans over a four-year period.

The allegations came to light following an internal audit conducted by NH Bank, which revealed significant irregularities during a review in August 2024. According to reports from JTBC, the bank believes Kim embezzled funds on 106 separate occasions from June 2020 to August 2024. The audit uncovered a troubling pattern of suspicious loan transactions originating from a branch located in the capital, Seoul.

Further investigations revealed that Kim had arranged loans exceeding $7.3 million using non-existent real estate as collateral. He reportedly secured these loans by forging documents and creating fictitious real estate registry certificates, using the names of acquaintances and other individuals to facilitate the fraudulent transactions.

In an alarming confession, Kim stated, "I took out loans using non-existent real estate as collateral. I invested in crypto. But I lost everything, so I don’t have any money." This admission underscores the risks and potential consequences of speculative investments in cryptocurrencies, particularly when pursued through illegal means.

NH Bank has already confirmed that approximately $8.8 million of the total embezzled amount was obtained through illicit lending practices. The bank's internal investigation is ongoing, and it has indicated that it is looking into the activities of additional employees to determine if further misconduct has occurred.

In response to the scandal, NH Bank has vowed to address all issues related to this case and is committed to improving its internal systems to prevent similar incidents in the future. The bank emphasized the importance of establishing more robust safeguards to protect against fraud and ensure accountability among its staff.

The situation at NH Bank raises concerns about the integrity of financial institutions in South Korea, particularly in light of similar breaches at rival banks. Earlier this year, Woori Bank faced allegations involving one of its former loan managers, who confessed to stealing approximately $7.3 million for crypto investments. This trend highlights the need for stricter oversight and reform in the banking sector to mitigate risks associated with financial misconduct.