An alleged crypto laundering scheme that pushed more than $100 million through South Korean bank accounts now sits with prosecutors.
Officials say the network hid behind everyday-looking bills for cosmetic surgery and overseas studies while it moved large volumes of digital assets into Korean won.
Three Chinese Nationals Face Prosecution
South Korea’s customs service said on Monday that it has referred three Chinese nationals to prosecutors on suspicion of laundering about 148.9 billion won, or roughly $107 million, in cryptocurrency, according to local media outlet Yonhap News Agency.
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The agency alleges that the group used an unauthorized foreign exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term channel in violation of the Foreign Exchange Transactions Act.
Investigators say the activity ran from September 2021 to June of last year and relied on a network of domestic and overseas cryptocurrency accounts and South Korean bank accounts.
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According to customs officials, the suspects booked transfers as if they covered cosmetic surgery for foreign nationals in South Korea or study-abroad costs for students.
By doing so, they allegedly made repeated high-value transactions resemble routine cross-border payments that banks see in sectors such as healthcare and education.
Alleged Laundering Method and Use of Front Expenses
The authorities say the ring bought cryptocurrency in several countries, sent it to digital wallets in South Korea, converted it into Korean won and then dispersed the proceeds across numerous domestic bank accounts.
The case breaks as South Korea continues to debate a comprehensive framework for its crypto market, even as digital assets have become a common investment for local households.
Expect ongoing updates as this story evolves.
