SEOUL, South Korea — South Korean law enforcement agencies have successfully dismantled a sophisticated underground remittance network responsible for illegally moving approximately 130 billion KRW (roughly $100 million USD) across international borders, primarily between South Korea and China.
The operation, which bypassed stringent national foreign exchange regulations, relied heavily on a dual-system approach involving the popular Chinese social media application, WeChat, and various cryptocurrencies, according to reports from prosecuting authorities.
The syndicate provided illegal currency exchange and remittance services for clients—often individuals or businesses engaged in unlicensed trade or seeking to evade taxes—who wanted to avoid mandatory regulatory reporting and traditional banking scrutiny. Initial contact, rate negotiation, and small payments were frequently handled through WeChat, utilizing its domestic transfer capabilities to mask the origin of funds.
For large-scale cross-border transfers, the perpetrators transitioned to decentralized digital assets. Cryptocurrencies provided the necessary speed and pseudo-anonymity, allowing vast sums to be moved instantly across jurisdictions without triggering alerts from the traditional financial system. Investigators suspect that stablecoins were utilized extensively to minimize volatility risk during the transfer process.
Several key members of the ring have been arrested and charged with violating South Korea’s Foreign Exchange Transactions Act. This bust underscores the growing challenge faced by global regulators as organized financial crime groups increasingly exploit the efficiency of cryptocurrency to facilitate massive, illicit liquidity transfers.
Source: South Korea busts $100M underground remittance ring using WeChat, crypto: Report
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