South Korea Proposes Mandatory Crypto Influencer Asset Disclosures as Police Arrest Two Over 22 BTC Evidence Theft

Lawmakers Target Finfluencers While Authorities Probe $1.5M–$2M Bitcoin Loss From Gangnam Police Custody

TL;DR

• South Korean lawmakers introduced amendments on February 25, 2026 requiring crypto and stock influencers to disclose asset holdings and compensation, with penalties aligned with major capital market offenses.
• Complaints involving quasi-investment advisors rose from 132 in 2018 to 1,724 in 2024, according to domestic data cited alongside the proposal.
• Police arrested two individuals on February 25, 2026 over the alleged theft of 22 BTC, valued at roughly $1.5–$2 million, originally seized in a November 2021 hacking case.

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South Korea’s ruling Democratic Party has advanced legislation requiring financial influencers who promote cryptocurrencies and stocks to disclose their asset holdings and compensation, while authorities separately confirmed the arrest of two individuals over the alleged theft of seized Bitcoin from police custody. The disclosure bill was introduced on February 25, 2026 by lawmaker Kim Seung-won, a member of the National Assembly’s Political Affairs Committee, and seeks to amend both the Capital Markets and Financial Investment Business Act and the Virtual Asset User Protection Act.

The proposed revisions would require individuals who repeatedly provide investment recommendations through social media platforms, mass publications, online communication channels, or broadcast outlets to publicly disclose the types and quantities of assets they hold, including digital tokens, as well as any payment, rewards, or benefits received for those recommendations. Specific thresholds defining repeated advice and the frequency and format of disclosures would be determined later by presidential decree if the bill passes.

Kim said finfluencers often provide “inappropriate or self-serving information,” adding that such conduct can lead to “unpredictable losses” for retail investors who rely on online investment commentary. Lawmakers indicated that penalties for violations would align with sanctions imposed for serious capital market offenses such as price manipulation, insider trading, or unfair trade practices.

Data cited in connection with the proposal showed a sharp rise in complaints involving quasi-investment advisors, increasing from 132 in 2018 to 1,724 in 2024. The figures were presented as part of broader legislative discussions aimed at strengthening oversight of online investment promotions across both traditional securities and virtual assets.

Global regulatory comparisons were referenced during discussions of the proposal, including enforcement actions by the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority, restrictions on financial promotions by the U.K. Financial Conduct Authority, and supervisory guidance issued through European regulatory channels. The bill remains at the legislative proposal stage and has not yet been enacted into law.

Separate from the legislative effort, South Korean police confirmed the arrest of two individuals on February 25, 2026 in connection with the alleged theft of 22 Bitcoin that had been seized as evidence in a prior hacking investigation. The digital assets were originally surrendered in November 2021 during a case tied to a hacking probe and were held at Seoul’s Gangnam Police Station.

The 22 BTC were valued at roughly $1.5–$2 million based on prevailing crypto price data at the time of reporting, with Bitcoin trading near the high-$60,000 range according to the COIN360 crypto price index. Authorities said the case remains under active investigation.

A police spokesperson stated, “We are investigating the circumstances surrounding the virtual asset leak, and as the investigation is still ongoing, we cannot confirm any specifics.” Officials said the missing assets were discovered during an internal audit ordered by the National Police Agency reviewing confiscated virtual assets.

Reports indicated that investigators are examining whether the Bitcoin had been stored in a complainant-supplied wallet rather than an official police-managed cold wallet. National Police Agency rules introduced in March 2022 require seized digital assets to be kept in designated cold storage wallets under official control.

The case follows prior scrutiny over digital asset handling within law enforcement agencies, including reports of losses involving approximately 320 BTC at the Gwangju District Prosecutors’ Office. Authorities have not released additional operational details as the investigation into the Gangnam station case continues. Police said further information would be released as investigative steps proceed.

This article has been refined and enhanced by ChatGPT.