Embezzling Insurance Funds for Cryptocurrency: Team Leader Faces 15-Year Jail Term

Embezzling Insurance Funds for Cryptocurrency: Team Leader Faces 15-Year Jail Term

The National Health Insurance Service (NHIS) has successfully recovered approximately 720 million won out of the 4.6 billion won embezzled by former team leader Mr. Choi. The embezzlement, the largest in NHIS history, involved the conversion of funds into cryptocurrency, leading to significant losses. Background Upon reporting the incident to the police in September 2022, NHIS initiated civil litigation to seize and recover Choi's accounts. Choi fled overseas but was apprehended 1 year and 4 months later. Court Sentencing In the first trial, Mr. Choi was sentenced to 15 years in prison. The court found that he had embezzled a massive amount of public funds and attempted to conceal his actions by investing in cryptocurrency. Cryptocurrency Investment Losses After excluding the recovered 720 million won, Choi reportedly converted the remaining funds into cryptocurrency, primarily investing in altcoins and derivatives. However, these investments resulted in substantial losses, totaling approximately 3.5 billion won. Consequences Mr. Choi's actions have not only led to his incarceration but have also damaged the reputation of the NHIS. The incident highlights the growing trend of individuals using cryptocurrency for illicit activities and the potential risks associated with these investments.