South Korea busts alleged $102 million crypto laundering scheme: report

Seoul, South Korea—South Korean investigative authorities have successfully dismantled a massive alleged cryptocurrency money laundering scheme valued at approximately 140 billion Korean won (around $102 million). The operation involved using digital assets, particularly stablecoins, to obscure the origin of funds derived from illicit foreign exchange activities.

The Seoul Central District Prosecutor’s Office announced the indictment of several key individuals believed to have spearheaded the cross-border operation. According to the investigation, the suspects utilized a complex network of overseas bank accounts and domestic crypto exchanges to convert fiat currency into cryptocurrency, transfer the assets internationally, and then liquidate them back into fiat through shell companies. This process was specifically designed to bypass strict domestic financial reporting requirements and evade regulatory oversight.

The laundered funds originated primarily from unlawful foreign currency transactions, violating South Korea’s stringent Foreign Exchange Transaction Act. Officials noted that the case highlights the growing sophistication of financial criminals who leverage the speed and pseudo-anonymity of digital currencies to facilitate large-scale illegal transfers. Authorities emphasized that they are increasing cooperation with international counterparts and strengthening tracking capabilities to combat the misuse of virtual assets for financial crimes.

Source: South Korea busts alleged $102 million crypto laundering scheme: report