According to Foresight News, according to Decrypt, South Korea's financial regulators issued a stern warning that life imprisonment will be imposed for cryptocurrency fraud cases with profits exceeding $4 million (about 5 billion won). The warning was issued after the enactment of South Korea's Virtual Asset User Protection Act in July 2024, which aims to prevent cryptocurrency crimes and was partly inspired by the incident of Terra/Luna founder Do Kwon and the collapse of the FTX exchange. Lee Bok-hyun, director of the Financial Supervisory Service (FSS) of South Korea, told 16 digital asset industry executives that financial regulators will continue to strictly enforce the bill. The new law also stipulates other penalties, including fines of 3 to 5 times the illegal profits and up to one year in prison. In addition, the bill requires virtual asset service providers (VASPs) to store at least 80% of customer funds in cold wallets and establish a cybersecurity incident reserve.