Key Takeaways
- Park was convicted of three wire fraud and two bankruptcy fraud counts.
- Prosecutors said he hid millions in crypto before claiming only $0.34.
- Sentencing is set for Dec. 10, with decades in prison possible.
Crypto Fortune Disappears From Bankruptcy Filings
A federal jury in Alexandria convicted Jihoon Park, 52, on Sept. 8 of defrauding investors and a U.S. Bankruptcy Court. The Justice Department’s conviction announcement reports that Park, of Chantilly, transferred more than $2.5 million from multiple victims to himself, then spent the proceeds on a house and cryptocurrency.
Park gained the victims’ confidence through personal relationships and his former affiliation with a large national financial institution. He promised safe investments and high returns before diverting their money for personal use. Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division stated:
“Instead, he stole the millions of dollars entrusted to him to enrich himself.”
Federal prosecutors have pursued other investor-fraud cases built on claims of sophisticated technology or low-risk returns. An August verdict involving the Block Bits cryptocurrency fund turned on an automated trading system that prosecutors maintained never existed.
Lawsuit Exposed Transfers and Concealed Crypto
Park moved assets to his wife after one victim sued him, then concealed cryptocurrency worth millions of dollars before seeking bankruptcy protection, according to prosecutors. His bankruptcy filings listed only $0.34 in financial assets and denied that he owned cryptocurrency, which prosecutors said was meant to avoid paying his victims back.
An August 2025 bankruptcy court opinion provides further details about one investment and the disputed property. The court listed as uncontested at that stage that an investor gave Park a $300,000 check in August 2024. Park purchased a Chantilly house for approximately $1.2 million the following month, using a $700,000 down payment that included the investor’s money.
Park’s Chapter 7 bankruptcy case began Jan. 14, 2025, in the Eastern District of Virginia, according to the opinion. A trustee later sought to recover the down payment or unwind the property’s transfer, while the investor pursued an interest in the house. Chief U.S. Bankruptcy Judge Brian F. Kenney dismissed that claim to an interest, holding that the trustee’s avoidance powers come first. The court also recorded that Park waived his bankruptcy discharge, which ordinarily releases a debtor from personal liability for qualifying debts.
Cryptocurrency holdings have surfaced in other insolvency cases where creditors are still waiting to be repaid. Dutch prosecutors recently raised $2.55 million by liquidating crypto connected to bankrupt trading platform Knaken, leaving thousands of customers seeking repayment through the bankruptcy estate.
Park Faces Sentencing in December
Jurors convicted Park of three wire fraud counts and two bankruptcy fraud counts following the federal trial. Each wire fraud count carries a maximum penalty of 20 years in prison, while each bankruptcy fraud count carries a maximum of five years. Those figures are statutory maximums, and the judge will determine the sentence under federal guidelines and other legal factors.
Another federal case announced in July accused a crypto investor of causing approximately $20 million in losses after allegedly persuading victims to entrust him with money and digital assets. Prosecutors alleged that investor funds moved through financial institutions and cryptocurrency exchanges to conceal their ownership and movement.
Promises of unusually high returns with little apparent risk are among the common cryptocurrency fraud warning signs. Park is scheduled to be sentenced on Dec. 10.
