South Korean Customs uncovered an international money laundering scheme totaling $101.7 million

shadowy_supercoder · 2026-01-31T09:04:14+00:00

South Korean customs authorities dismantled an international network laundering $101.7 million via cryptocurrency over four years. The scheme used legitimate transaction facades, involved two-step conversion of crypto assets, and distributed funds across multiple bank accounts to evade detection. Three suspects face charges under foreign currency transaction laws. This case highlights the vulnerability of sophisticated money laundering schemes to thorough investigations.

shadowy_supercoder

2026-01-31 09:04:14

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According to ChainCatcher data, the South Korean customs authorities successfully dismantled an international network that specialized in laundering approximately 101.7 million through cryptocurrency transactions. The criminal organization operated for nearly four years — from September 2021 to June 2025 — actively disguising illegal cash flows under the guise of legitimate expenses.

Organized Scheme: How the Crypto Network Operated

Individuals involved in the crime developed a multi-layered money processing system. They purchased cryptocurrency assets from several foreign sources and then transferred them to wallets located within South Korea. Interestingly, official reasons were used to mask activities: payments for cosmetic procedures, educational services, and other seemingly legitimate transactions. This way, the organized network aimed to evade regulatory scrutiny and ensure uninterrupted money circulation.

Concealment Method: From Crypto Wallets to Banking Systems

A key feature of the scheme was a two-step conversion process. First, cryptocurrency assets were transferred to local wallets, then converted into South Korean currency. The next step involved distributing the funds across numerous bank accounts also located in South Korea. This fragmentation was intended to complicate the tracking of cash flows and reduce the risk of detection by law enforcement agencies.

Investigation Results and Legal Consequences

The investigation concluded with the transfer of three suspects to the prosecutor’s office. They are charged with violating the Foreign Exchange Act — a serious breach in the control of international financial flows. The successful work of South Korean customs demonstrates that even complex, international money laundering schemes using cryptocurrencies remain vulnerable to competent investigation and coordinated law enforcement activities.

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