South Korea busts $101M crypto laundering ring

South Korea busted a $101.7M crypto laundering ring, arresting three suspects who funneled overseas payments into local accounts via crypto, highlighting regulatory gaps.

South Korean customs authorities have dismantled a major international money laundering ring that processed nearly 149 billion won ($101.7–$107.5 million) through cryptocurrency transactions between September 2021 and June 2023. Three individuals, including Chinese nationals, have been referred to prosecutors for allegedly violating the Foreign Exchange Transactions Act. The suspects reportedly accepted payments from overseas clients for services such as cosmetic surgery and tuition. They converted these funds into cryptocurrency using overseas exchanges, then transferred the assets to South Korean wallets. The crypto was subsequently sold on domestic trading platforms, with proceeds dispersed across numerous local bank accounts to obscure the origins of the funds. Authorities highlighted the use of multi-country wallets and legitimate-looking expenses to evade detection. This crackdown underscores South Korea’s ongoing efforts to tighten oversight of digital asset markets, with regulators emphasizing stricter controls and increased scrutiny on crypto exchanges as the country continues to embrace digital assets.