Hankyul Park Guilty of Fraud at BOSCoin
The former director of BOSCoin, Hankyul Park, has been found guilty of fraud from his dealings with BOSCoin and their funds. Accusations of blackmail persists as well. He has been sentenced to 30 months in prison and an additional 3 years probation.
A further development in this case, which began in late 2018, is that Park’s father, Changki Park, was acquitted of his charges. Changki Park was found guilty of fraud, blackmail, and related charges mid-year 2019 as a result of his dealings with BOSCoin. Those charges were successfully challenged in South Korean appellate courts.
Among Hankyul Park’s injuries were establishing a cryptocurrency exchange based on a revenue sharing model called NexyBit with funds allegedly siphoned off from the BOSCoin Foundation. He debuted this exchange in early 2018, about a year after BOSCoin had completed its ICO and would go down in history as the first, and one of the largest (by today’s BTC price) ICO’s in South Korean history for raising about 7000 BTC.
After a falling out between himself and other executives in the BOSCoin Foundation, Hankyul Park transferred 6000 of the Foundation’s BTC into his own account in order to “[participate in activities with other companies, then return the Bitcoin to the Foundation when the events are done.]”
With the Foundation’s funds, he acquired altcoins valued at about $8000, but failed to return the Bitcoin and the altcoins to the Foundation’s account. Rather than return them from his personal account back to the Foundation’s account, he proposed to transfer the funds to multi-signature accounts in each of the executive’s names.
Had Park managed to convince the executives of using multi-signature accounts, he would have created a major conflict of interests at the Foundation. Under that setup, withdrawals would require the consent of three of the four executives. Changki Park and Hankyul Park would have been able to veto any withdrawal they did not agree with, and even force the other executives to acquiesce to their own requests or face further vetoes from the father-son duo.
In June of 2017, Park attempted to blackmail the executives of BOSCoin by using his tremendous leverage in the company. He told the board that if they did not allow him to invest 1500 BTC of the Foundation’s funds in his own company, then he would make all 6000 of the BTC he had taken from them unusable.
It appears that Changki Park’s convictions were overturned in appeals due to technicalities in signatures and names on documents. Furthermore, it is likely that the technicalities that got Hankyul Park convicted last week are what saved Changki Park in appeals.
The Parks plainly deny any wrongdoing and claim that they are victims of name-bashing on behalf of BOSCoin and the BOS Foundation.
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