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Prosecutors Seek 9-Year Prison Sentence for Hancom Chairman Over Crypto Slush Fund Scandal
Technology Services · Internet Software/Services · yonhap_finance · 2026-09-10
South Korean prosecutors have requested a nine-year prison term for Hancom Group Chairman Kim Sang-cheol regarding charges of creating a 9 billion won slush fund.
What Happened
Prosecution's Demand: Prosecutors requested a nine-year prison sentence for Hancom Group Chairman Kim Sang-cheol during his final trial hearing on October 10. The charges involve breach of trust and embezzlement related to the creation of a multi-billion won slush fund using the 'Arowana Token'.
Case Background: Kim is accused of siphoning approximately 9.6 billion won from the sale of Arowana Tokens into his son's accounts and misappropriating nearly 500 million won in company funds. The Arowana Token previously faced intense scrutiny for suspicious price manipulation shortly after its market debut.
Defense Stance: While the defense denied the breach of trust charges by shifting responsibility to subordinates, they acknowledged the embezzlement claims. Chairman Kim expressed regret for his lack of oversight and requested leniency from the court during his final statement.
Judicial Outlook: Accomplices, including Kim's son and the CEO of Arowana Tech, have already received confirmed prison sentences of three years and two and a half years, respectively. The court is scheduled to deliver its final verdict on the chairman's case on November 5.