South Korea Reviews Debt Relief After Crypto Traders Receive Aid

South Korea’s debt relief program is under renewed scrutiny after it was revealed that hundreds of cryptocurrency traders benefited from a fund meant to support small businesses. Reports indicate that more than $15 million in relief was granted to 269 individual crypto traders. Following an audit by the national watchdog, financial authorities acknowledged flaws in the screening process and committed to tightening eligibility rules. Regulators admitted that stronger legal reforms are needed to stop asset holders from accessing similar aid in the future.

The fund was originally created to ease COVID-era financial pressure on small business owners but was found to be misused through undisclosed income and crypto holdings.