The eldest son of former South Korean lawmaker Thae Yong-ho has been transferred to prosecutors on allegations he defrauded seven people out of around 1.6 billion won ($1.06 million) through a cryptocurrency investment scheme that allegedly used his father’s political profile to gain trust.
Seoul police said the suspect, identified only by the surname Thae, was transferred to prosecutors on May 13 on charges including fraud, illegal fundraising, identity theft and embezzlement. Authorities allege he took money from investors by promising profits from cryptocurrency investments.
He is also accused of embezzling funds from a publishing company run by his mother, author Oh Hye-sun. Several of the alleged victims reportedly knew the suspect personally before the scheme unraveled.
The allegations have attracted national attention because of Thae Yong-ho’s political and diplomatic background. Before defecting from North Korea with his family in 2016, Thae served as deputy head of mission at North Korea’s embassy in the United Kingdom. He later entered South Korean politics and won a National Assembly seat as a member of the conservative People Power Party.
According to police, investigators believe the suspect used his father’s name and public standing to gain trust from potential investors before obtaining money tied to the alleged cryptocurrency scheme. Prosecutors will now determine whether the evidence supports formal prosecution on all charges.
The case resurfaced publicly during a 2024 parliamentary audit while Thae Yong-ho was serving as secretary-general of the Presidential Advisory Council on Democratic and Peaceful Unification. During the hearing, he apologized publicly over the allegations involving his son.
“I deeply apologize for causing public concern because of my eldest son’s issue,” Thae said at the time.
South Korea has faced repeated pressure to tighten oversight of cryptocurrency-linked investment activity after a series of fraud allegations involving informal fundraising, digital asset speculation and unregistered investment operations.
If prosecutors proceed with formal charges, the suspect could face criminal exposure linked to fraud, illegal fundraising and embezzlement allegations under South Korean law.