International Crime Ring Laundered Over 150 Billion Won in Cryptocurrency
South Korean authorities have uncovered an international crime ring accused of laundering more than 150 billion won ($101.7 million) in cryptocurrency through an unauthorized foreign exchange scheme, according to Yonhap News.
The case highlights growing concerns over cross-border crypto-related financial crimes and the misuse of digital assets to bypass capital controls.
Investigation and Suspects
The Korea Customs Service (KCS) said on Monday that it has referred three Chinese nationals to prosecutors for alleged violations of South Korea’s Foreign Exchange Transactions Act.
Investigators believe the suspects laundered approximately 148.9 billion won between September 2021 and June 2025, using a complex network of cryptocurrency wallets and bank accounts across multiple jurisdictions.
According to the KCS, the suspects exploited both domestic and overseas crypto exchanges, as well as South Korean bank accounts, to conceal the origin and destination of the funds.
Authorities said the illicit transfers were disguised as legitimate cross-border payments, including cosmetic surgery expenses for foreign nationals and overseas education costs for students, in order to avoid raising red flags.
Laundering Strategy and Detection
Customs officials explained that the group used a layered laundering strategy to evade detection by financial regulators.
The suspects allegedly purchased cryptocurrency in several countries, transferred the assets to digital wallets held in South Korea, and then converted the crypto into Korean won.
The proceeds were subsequently distributed through numerous domestic bank accounts to further obscure the transaction trail.
The investigation was launched after customs authorities detected suspicious large-scale foreign exchange flows inconsistent with declared transaction purposes.
By tracing blockchain records and banking data, investigators were able to link the crypto movements to unauthorized FX transactions and identify the individuals involved.
Authorities' Response and Future Actions
The Korea Customs Service said the case underscores the increasing sophistication of financial crimes involving digital assets and cross-border payments.
Officials added that they are strengthening cooperation with financial regulators and law enforcement agencies, both domestically and internationally, to curb crypto-based money laundering.
South Korea has intensified oversight of cryptocurrency transactions in recent years, tightening reporting requirements and enhancing monitoring of cross-border flows.
Authorities said further investigations are ongoing and warned that similar schemes will face strict enforcement as regulators move to close loopholes in the digital asset ecosystem.