"Coin Scams Happen in an Instant," Lee Chanjin Says, "It's Hard to Keep Up"[2026 National Assembly Audit]

Lee Chan-jin, Governor of the Financial Supervisory Service (FSS), said the FSS still lacks the capacity to respond to virtual asset scams that can cause billions of won in losses in an instant.

Financial Supervisory Service Governor Lee Chanjin delivers opening remarks during a parliamentary audit of the Financial Supervisory Service and other agencies at the National Assembly on Oct. 19, 2026. Photo by Yoon Dongju

Rep. Min Byeong-deok of the Democratic Party of Korea said during a parliamentary audit of the FSS by the National Assembly’s Political Affairs Committee on Oct. 19, “As with voice phishing, where the effectiveness of a scam wears off after a few days, speed is crucial. That is even more important in financial fraud involving virtual assets.”

Citing a fake mainnet impersonating GIWA Chain, an Ethereum Layer 2 blockchain developed by Dunamu, Rep. Min asked, “This scam resulted in 2.8 billion won being transferred in half a day. What capacity does the FSS have to respond to these kinds of on-chain scams?”

Lee said, “At present, it is difficult to keep up with the speed,” effectively acknowledging that the FSS lacks sufficient response capacity.

Rep. Min argued that supervisory personnel and standards for virtual asset exchanges should be put in place. “To build supervisory capacity for the virtual asset market, we need dedicated blockchain forensics staff,” he said. “We also need to establish supervisory standards for major exchanges as soon as possible.”

This content was produced with the assistance of AI translation services.