Crypto Money Laundering Case Worth $101M Shakes South Korea Financial System

South Korea’s customs authorities revealed a major international cryptocurrency laundering operation. The Korea Customs Service (KCS) reported that the ring moved approximately 150 billion won, equivalent to $101.7 million, through unauthorized foreign exchange schemes. Investigators said the suspects exploited gaps in domestic and overseas financial systems to conceal illicit flows.

The operation reportedly spanned from September 2021 to June of last year. During this period, the group allegedly used cross-border crypto wallets and bank accounts to funnel funds. Authorities emphasized the sophistication of the scheme, highlighting efforts to disguise the origin and purpose of the transfers.

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Methods Used To Conceal Crypto Transfers

As the investigators explained, the criminals concealed their transaction by using payments for cosmetic surgery for foreigners and study abroad fees as a disguise. According to the officials, the criminals purchased the cryptocurrency in a number of countries and then transferred it to digital wallets in South Korea.

According to reports, the ring used the purchased cryptocurrencies in various countries in a bid to evade detection. The next move involved transferring the digital currencies into South Korean wallets for conversion into the local currency. The last part of the operation involved spreading the cash into different domestic accounts.

Three Chinese Nationals Face Prosecutors Today

Three Chinese nationals involved in the scandal have been referred to prosecutors for possible contravention of the Foreign Exchange Transactions Act. The incident has highlighted the need for increased regulation of digital assets, especially when they cross borders.

The customs authorities are soon going to increase their monitoring of cryptocurrency transactions and improve international coordination with other regulators. Analysts believe that this operation will serve as a warning for other illicit organizations that are trying to take advantage of loopholes in South Korea’s financial regulations. This operation has raised several questions about whether current regulations are capable of identifying sophisticated money laundering in cryptocurrencies.

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