Police Officers and Civilians Indicted in Cryptocurrency Money Laundering Operation
South Korean authorities have charged two senior police officers and five civilians for their alleged roles in a large-scale cryptocurrency-based money laundering operation tied to voice phishing networks.
The Suwon District Prosecutors’ Office Criminal Division 2 announced the indictments on Thursday.
The suspects were indicted without detention and face charges under the Act on the Aggravated Punishment of Specific Crimes and the Act on the Regulation and Punishment of Criminal Proceeds Concealment.
Details of the Money Laundering Scheme
Prosecutors say the scheme funneled hundreds of billions of won from voice phishing victims into cryptocurrencies that were then transferred to criminal organizations.
According to investigators, A, a former senior superintendent and ex-chief of the Dobong Police Station, allegedly received 79 million won in bribes from cryptocurrency operator C and others between July 2022 and July 2024.
In exchange, A reportedly provided confidential investigative updates, alerted the suspects to police activity, and facilitated legal support.
He also allegedly received promises of exclusive investment opportunities in coins expected to be listed on exchanges, with guarantees that his principal would be returned even if the ventures failed.
Involvement of Another Senior Police Officer
A then introduced C and other operators to B, a former superintendent with the National Police Agency. Prosecutors say B accepted 10 million won in designer goods, including luxury wallets, coats, and shoes, over roughly ten occasions.
B is accused of confirming case statuses, intervening in investigations, and requesting the lifting of payment suspension orders on accounts linked to the illicit funds.
Cryptocurrency Company CEO's Role
C and D, the CEO of a cryptocurrency company, allegedly exchanged 249.6 billion won in voice phishing proceeds into digital assets between January and October of last year. D, who previously ran a virtual asset business, was recruited to help disguise the cash inflows as legitimate corporate revenue.
Financial Impact and Asset Seizures
Prosecutors estimate the illegal profits generated from the scheme at 11.2 billion won and have imposed asset seizure and preservation orders totaling 1.5 billion won while continuing to track hidden property.