South Korean Lawyer Fined for Misappropriating Settlement Funds for Crypto Investment

A South Korean lawyer has been fined after diverting settlement funds entrusted to him by clients and using the money to buy cryptocurrencies, highlighting ongoing concerns about ethical standards and financial misconduct in the growing digital-asset space.

According to court records from the Cheongju District Court, the unnamed attorney was contracted by the North Chungcheong Provincial Police Agency to represent three officers in a civil case that resulted in a settlement in April 2021. Instead of passing on roughly $4,000 in settlement funds to his clients, prosecutors say the lawyer kept the funds in his personal account and used them to invest in crypto assets.

During sentencing, presiding Judge Ji Yun-seop described the conduct as a “heinous crime” that violated professional ethics. However, the court — taking into account the lawyer’s admission of guilt, remorse, and lack of prior criminal record — opted against incarceration and instead **imposed a fine of approximately $7,000, a decision that has drawn public criticism for being overly lenient given the breach of trust and misuse of client funds.

Legal observers and members of the public have expressed concern that such outcomes may not sufficiently deter financial misconduct — especially as cryptocurrencies continue to attract both speculative interest and misuse in financial crimes.