According to Decrypt, South Korea's financial regulator warned that criminals involved in crypto scams with losses exceeding $4 million (about 5 billion won) may face life imprisonment. The move was made in the context of the Virtual Asset User Protection Act, which was implemented in July 2024 and aims to prevent crypto crimes and was inspired by the collapse of Terraform Labs founder Do Kwon and the FTX exchange. Under the bill, in addition to possible life imprisonment, criminals may face fines of up to three to five times the illegal gains and a maximum of 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.