South Korean Prosecutors Crack Down on Loan Sharks Using Military Secrets for Crypto Loans
South Korean prosecutors have arrested loan sharks accused of using confidential military passwords as collateral for high-interest loans to soldiers seeking funds for cryptocurrency investments. The crackdown, announced on October 2, follows the discharge of an unnamed captain involved in the scheme, who received a suspended prison sentence. Prosecutors have indicted three individuals, including a 37-year-old ringleader, for violating the Military Secrets Protection Act and the Loan Business Act. Allegations indicate that soldiers were offered loans with exorbitant interest rates of up to 34,160% annually in exchange for sensitive military information. Of ten active-duty personnel who sought loans, three provided their passwords after being threatened with exposure if they failed to repay. Soldiers reportedly borrowed between 1 to 2 million won, approximately $759 to $1,510, amid financial struggles linked to online gambling and failed cryptocurrency investments. The case raises conce
South Korean Prosecutors Crack Down on Loan Sharks Using Military Secrets for Crypto Loans
South Korean prosecutors have arrested loan sharks accused of exploiting confidential military passwords as collateral from soldiers seeking funds for cryptocurrency investments. The arrests, announced on October 2, come after the Ministry of National Defence discharged an unnamed captain involved in the scandal, who received a suspended prison sentence.
Investigations reveal that the former captain and other soldiers persuaded loan sharks to provide cash loans in exchange for “level 3” military security passwords. The Jeonju District Prosecutors’ Office has indicted three individuals, including a 37-year-old suspected ringleader and two accomplices. They face multiple charges, including violations of the Military Secrets Protection Act and the Loan Business Act.
The prosecutors allege that the loan sharks issued illegal high-interest loans with rates soaring as high as 34,160% annually. Soldiers reportedly provided not only passwords but also sensitive military information, including identification tags and training plans.
The investigation uncovered that ten active-duty military personnel contacted the loan sharks for financial assistance, with three soldiers agreeing to share their passwords in desperation to cover debts linked to online gambling and failed crypto ventures. Prosecutors noted that the loan sharks threatened the soldiers with exposure if they failed to repay the loans.
The amount borrowed by each soldier ranged between 1 to 2 million won, equivalent to approximately $759 to $1,510. However, officials stated that it appeared the loan sharks had not attempted to utilize the confidential passwords to access military installations. The case highlights the intersection of financial desperation and security breaches within the military, prompting further scrutiny of the lending practices targeting service members.
Click Here to Visit
What's Your Reaction?
